The NCUA told North Carolina's state-chartered credit unions onFriday that it has completed its dual examinations that followedState Employees' Credit Union's publication of its CAMEL score.

NCUA Executive Director David Marquis wrote that while theagency regretted any inconvenience to credit unions, the separate exams wereneeded because the North Carolina regulator authorized a federallyinsured credit union to violate an NCUA regulation and the ShareInsurance Agreement.

This action “naturally resulted in a loss of trust. The factthat the North Carolina regulator took this unprecedented actionwithout any prior discussion with NCUA made it even moredisturbing,'' Marquis said in the letter obtained by CreditUnion Times.

He reiterated the agency's position that the North Carolinaregulator could end the dispute by taking two actions: Withdrawingpermission of any federally insured credit union to publicize itsCAMEL rating or any other part of an exam report; End the “betatest pilot program” which authorized State Employees' Credit Unionto post one of its CAMEL ratings on its website, and ensure thatthe credit union removes the rating from any public view.

Marquis said he also had made the request of Jerrie Jay,administrator of North Carolina's Credit Union Division during ameeting on Dec. 5 in Raleigh.

Jay disputed that account and told Credit Union Timesthat at the December meeting Marquis didn't specify what actions hewanted her agency to take. “I tape recorded the meeting, with theNCUA's knowledge, and they didn't make a request then. I asked themto put any requests to me in writing and I never received aletter,” she said.

Meanwhile, SECU President/CEO Jim Blaine said Friday that he hadno direct communication with federal regulators about the issuesince he revealed the rating last fall. His Raleigh, N.C.-based creditunion has assets of $23 billion.

In an email to Credit Union Times, Blaine said,“Honestly, some dialogue would have been better than Mr. [RegionIII Director Herbert] Yolles standing in the middle of NorthCarolina and setting his underpants on fire!”

The NCUA said Yolles and its general counsel, Michael McKenna,also met with the North Carolina Credit Union League board to briefthem on the matter last week. Some credit union leaders called forNCUA Board Chair Debbie Matz to visit the state to help settle the dispute.

Matz had said North Carolina regulators violated the federal agency's trust by approving the disclosureof the score.