Ignoring a plea from NCUA Chairman Rick Metsger, Rep. Frank Guinta(R-N.H.) introduced legislation Thursday that would require theagency to adopt an 18-month exam cycle for certain creditunions.

In a letter to Guinta (pictured) earlier this week, Metsger saidhe hoped the congressman would hold off on the legislation andallow the NCUA to adjust the exam cycle itself.

To qualify for the 18-month cycle, under Guinta's bill, a creditunion must – in general – have less than $1 billion in assets, bewell-capitalized and have been found to be well-managed in its lastexam. Also, the credit union can't be the subject of a currentenforcement action.

The legislation, H.R. 5419, would require the NCUA to issueregulations implementing the requirements within 100 days of itsenactment. It would also require the agency to prepare a report onhow much money is saved as a result of the extended examperiod.

In his letter, Metsger said giving the agency the power toadjust the exam cycle would also give it the flexibility to adjustthe cycle during an economic downturn.

“Moving to extend the exam cycle through the regulatory cyclethrough the regulatory process is the most expeditious way toaddress this important issue,” he wrote.

He said the NCUA would adjust the exam cycle for certain creditunions within the next two months and is conducting an extensivereview of the entire process.

Guinta apparently was not willing to wait, however.

“Credit union employees' time and money could be better spentproviding good service to car and home buyers, as well asentrepreneurs, who rely on local credit lines,” Guinta said.

He also said House Financial Services Chairman Jeb Hensarling(R-Texas) has agreed to include Guinta's plan in his proposal tooverhaul financial institution regulatory powers, which heplans to introduce in the coming week.

Credit union trade groups praised Guinta's decision to introducethe legislation.

NAFCU Vice President of Legislative Affairs Brad Thaler said,“It is heartening that policymakers in both Congress and at [the]NCUA are moving toward the same goal.”

CUNA Chief Advocacy Officer Ryan Donovan added, “We haveconfidence right now that we can get to where we need to be withrespect to supervisory improvements through the steps [the] NCUAhas indicated it is taking, but it is nice to know that if thingsget off track, we have friends in Congress ready to step in andhelp.”