Senators Jerry Moran (R-Kan.) and Joe Manchin (D-W.Va.) reintroduced a bill on Wednesday that aimed to improve the examination process for financial institutions.
The senators previously introduced the legislation in 2013. The new bill largely reflects the language of the previous bill, which would provide financial institutions with the information used as the basis for decisions in an examination, and establish an ombudsman at the Federal Financial Institution Examination Council. Financial institutions could raise concerns about their examination with the ombudsman.
Patrick Miller, president/CEO of the $405 million CBC Federal Credit Union in Oxnard, Calif., included CUNA's support for the bill in his testimony at a House Financial Services Committee hearing on Wednesday.
“Examinations should be based on the laws Congress enacts and the regulations that NCUA promulgates, not on examiner interpretation of best practice or guidance,” Miller said in his written testimony for the hearing on preserving consumer choice and financial independence. “Further, financial institutions need an examination appeals process that is independent and protects them from examiner retaliation.”
Peggy Bosma-LaMascus, president/CEO of the $500 million Patriot Federal Credit Union in Chambersburg, Pa., expressed NAFCU's support for the bill in her testimony as well.
“Credit unions face more examiner scrutiny than ever, as the examination cycles for credit unions have gone from 18 months to 12 months since the onset of the financial crisis, even though credit union financial conditions continue to improve,” her written testimony stated.
“Additional exams mean additional staff time and resources to prepare and respond to examiner needs,” Bosma-LaMascus added. “NAFCU has concerns about the continued use of Documents of Resolution (DOR) when they are not necessary or are used in place of open and honest conversations about examiner concerns.”
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