The $32 million Commodore Perry Federal Credit Union haswithdrawn its exam appeal to the NCUA Board.

Commodore Perry President Tom Renz stressed the decision doesnot reflect a change in the credit union's position regarding its2011 examination results.

The Oak Harbor, Ohio, credit union still alleges examiner RogerA. Clark retaliated in the form of a riskier CAMEL score afterCommodore Perry officials reported he had harassed and bulliedemployees.

“We believe those results were tainted and we can show thatfactual errors were made by the NCUA throughout the appellateprocess,” Renz t0ld Credit Union Times in an interviewTuesday night.

Also Read:

• Jan. 22, 2013 NCUA Grants Commodore Perry Extension
• Dec. 19, 2012 NCUA Rejects Commodore Perry Appeal
• Nov. 2, 2012 NCUA OIG Denies Request for Report
• Oct. 25, 2012 Appeals Panel Can Toss Commodore Perry ExamFindings
• Oct. 3, 2012 Ohio CU Says Examiner Harassed, Bullied,Retaliated

The credit union appealed its 2011 exam results all the way tothe NCUA's Supervisory Review Committee, which heard the case Nov.7, 2012, but officially denied the appeal Dec. 19.

However, NCUA Chairman Debbie Matz granted Commodore Perry a60-day extension towork out some details with Regional Director Herb Yolles, and set anew deadline of March 18.

Renz said the 5,000-member credit union will abandon the NCUA's“flawed, expensive and contentious” appellate process, and willinstead devote resources toward working constructively to improvethe process for the benefit of the industry.

“It is our belief that these problems are more important to theindustry than the CAMEL scores in question, which have sinceimproved, are to our organization,” he said.

NCUA spokesman John Fairbanks said late Tuesday the NCUA hadjust received the credit union's letter notifying the agency it hadofficially scrapped the appeal fight, and would provide a responseafter a careful review.

Going forward, Renz said Commodore Perry officials will work inclose collaboration with the Ohio Credit Union League and CUNA in pursuit of regulatory andlegislative changes to the exam appeals process.

OCUL President/CEO Paul Mercer said Wednesday that CommodorePerry's decision to drop its appeal is a positive one, because thecredit union needs to move forward and focus on serving itsmembers.

The credit union's willingness to make its experience public andshare it with the league have helped the advocacy effort byrevealing how the examination and appeals process works “onreal-world level”, Mercer said.

Renz, who nabbed the Credit Union Times' 2013 Trailblazer Award for PoliticalAction, said three areas in which the NCUA needs toimprove its exam appeals process include a lack of procedural dueprocess, overly vague guidelines for CAMEL scores and the inabilityof credit unions to appeal issues not addressed in earlierappellate rulings.

While he called NCUA Chairman Debbie Matz, Board Member MichaelFryzel and other high-ranking officials “attentive, respectful, andresponsive professionals that legitimately want the best for ourindustry,” Renz also said his dedication to improving the processshould be a “call” to the NCUA to “open the doors to discussion ofthese topics.”