Kucey, whose Miami Lakes, Fla.-based credit union has assets of $126 million, said the current examination process is “by its very nature, can be inconsistent.''

She added that the standards by which credit unions are evaluated shouldn't change from examination to examination.

Kucey and Watts will be testifying before the House Financial Services Committee's Subcommittee on Financial Institutions and Consumer Credit. The panel's chairman, Rep. Shelley Moore Capito (R-W.Va.) and ranking Democrat Rep. Carolyn Maloney (D-N.Y.) are the lead sponsors of the measure.

Under the bill, a financial institution that is unhappy with the results of its examination would have the right to appeal it to an administrative law judge who would submit his or her findings to the ombudsman of the Federal Financial Institutions Examination Council (FFIEC), which is made up of representatives of federal and state regulatory entities. NCUA Chairman Debbie Matz is the council's current chairman.

In Watts' prepared testimony, he said the bill is needed because often examinations are “based on policy guidance and examiners' views of best practices rather than regulation and the law.''

He added that credit unions “have the right to manage risk without being directed by examiners to eliminate it.''

Watts, who is testifying on behalf of CUNA, noted that a survey by the trade association found that 20% of credit unions were dissatisfied with their most recent examinations.