Over the past 10 years, not once has a credit union won an exam appeal heard by the NCUA's Supervisory Review Committee.
According to statistics released by the agency, prompted by a Freedom of Information Act request by Credit Union Times, the NCUA SRC has heard just four appeals since Jan. 1, 2002, and none ruled in the credit union's favor.
The central exam issues of the four appeals included CAMEL code assignments and loan classification.
Credit unions fared better on the regional level, but still only prevailed 27% of the time. Since Jan. 1, 2007, regional SRCs have heard 48 appeals related to exam disputes. Of those, 13 were ruled in the credit union's favor, the agency said.
In addition to CAMEL code assignment and loan classification disputes, exam issues at the regional level included documents of resolution, allowance for loan and lease losses, and wording changes in the exam.
NCUA Chairman Debbie Matz has said in letters to trade associations and during Listening Sessions that the agency encourages credit unions to use the four-step exam appeals process if they disagree with exam findings.
If discussions with the examiner and supervisory examiner are unsuccessful, credit unions can elevate the matter to the regional director, and further to the national SRC, a three-person panel composed of senior NCUA executives.
“Surprisingly, few credit unions actually avail themselves of this fourth step in the appeals process,” Matz wrote in an April 17 letter to CUNA President/CEO Bill Cheney.
That letter was in response to HR 3461, the Financial Institutions Examination Fairness and Reform Act, which would require examiners to cite authority for exam exceptions.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
