In a letter to NCUA Chairman Debbie Matz, Reps. Frank Guinta (R-N.H.) and Ruben Hinojosa (D-Texas) called upon the agency to extend the exam cycle length for well-capitalized credit unions and provide a timeline for its efforts.

The two congressmen applauded the agency's 2015 regulatory relief efforts in the letter and requested that the agency continue to “find solutions to eliminate burdensome and duplicative regulations.” They also expressed concern over the decline in credit unions since 2008, which they said was “due in no small part to overly burdensome regulations on the industry.”

Additionally, they cited a review of the agency's budget of $6.4 million for airfare and auto rentals, and suggested it move back to an extended examination cycle with an average of 18 months for well-run institutions as a way of reducing these operating costs moving forward.

Guinta and Hinojosa added, “Doing so would be one way to hold the line on, or even cut, duplicative examination expenses. Allowing more time in between examinations would minimize costs for the agency and especially for smaller lower risk institutions.”

Moving to an 18-month exam cycle would preserve the NCUA's ability to address risk within the system in a timely manner, but also allow the agency flexibility in its staffing and budgeting process, thus saving valuable time, resources and money for both the NCUA and credit unions, the letter said.

They added the NCUA has the authority to implement an extended examination cycle, unlike other financial institution regulators.

“We strongly encourage the agency to implement a new extended examination schedule for credit unions to help assist in your regulatory relief efforts,” they said.

The letter concluded by asking whether the NCUA plans on moving toward an extended examination cycle in 2016.

“If so, what is your timeline? If not, why not?” it questioned.

Credit union trade associations applauded the letter to Matz, as both CUNA and NAFCU have previously called upon the agency to increase the examination cycle.

Instant Insights /

Congressmen to NCUA: Extend the Exam Cycle

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