The still-simmering dispute over CAMEL disclosures in North Carolina could prompt a third of the state-chartered credit unions there to switch to a federal charter, the North Carolina Credit Union League said.
That comes from a survey of 46 of the 48 state-chartered CUs done after the NCUA conducted a sweep of examinations of its own a few weeks ago following the CAMEL score disclosure by the $24 billion State Employees' Credit Union.
Meanwhile, the state's top credit union regulator, which authorized the release, said the federal agency continues to rebuff efforts to meet to discuss the situation.
The league said 30% of the 39 credit unions responding to the survey said they were "very" or "somewhat" likely to convert to a federal charter if the situation is not resolved and the dual examinations continue.
Another 38% of respondents say they are undecided about a potential charter switch, with less than a third (31%) saying they are "unlikely" to convert.
"The results speak for themselves," said NCCUL President/CEO John Radebaugh. "Credit unions appreciate the value of the dual charter, but they do not appreciate the regulatory and operational burden they've been placed under. "
However, if the issue is resolved this year, the league noted, more than 80% of the respondents said they would be "very" or "somewhat" unlikely to convert if the NCUA and the N.C. Credit Union Division "began working together once again."
But Jerrie Jay, the state's top regulator, said a Tuesday meeting she called in Raleigh to meet again with NCUA's top personnel, including Inspector General William A. DeSarno, to help resolve the dispute was called off when NCUA personnel declined to show.
"I have extended another invitation," Jay said, noting that earlier efforts to bring top officials from the agency, including Chairman Debbie Matz, also were declined.
The NCUA has maintained meetings were not necessary and that it stood by its position that the state erred in authorizing the CAMEL disclosure.
Jay said that this time she had invited DeSarno to hear the tapes from a Dec. 5 meeting to review what she said were misleading statements by David Marquis, executive director, and Atlanta Regional Director Herbert Yolles.
Radebaugh, the league president, said, "Clearly, credit unions want a resolution to this situation, and they are willing to reconsider their chartering status if the regulators can't find a way to resolve their differences."
The league distributed the survey results to its member credit unions this week in a report titled Impact of Dual Exams on NC State Chartered Credit Unions.
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