The working group called for the agency, starting January 1, to extend the exam cycle for credit unions with less than $1 billion in assets, as well as:

• Have CAMEL code 1 or 2, both in composite and management rating components;

• Are well-capitalized per prompt correct active rules;

• Have no documents of resolution related to significant recordkeeping problems; and

• Have no formal or informal enforcement or administrative order.

For those credit unions, examinations would begin between 14 and 20 months after the previous exam was completed.

For all other credit unions, starting January 1, examinations would begin between eight and 12 months after the previous exams were completed.

The working group also recommended that the NCUA continue to conduct targeted and defined scope exams using the Small Credit Union Examination Program for financially- and operationally-sound credit unions with less than $30 million in assets.

Under the new examination policy, the NCUA would attempt to coordinate with state regulators examinations of federally insured, state-chartered credit unions. Most state examinations occur every 12 to 18 months.

For those credit unions, examinations would occur not less frequently than once every five years, except for credit unions that have at least one the following:

• Greater than $1 billion in assets;
• Composite CAMEL code 4 or 5 with assets greater than $50 million; or
• Composite CAMEL code 3 with assets greater than $250 million.

For those credit unions, examinations would begin between eight and 12 months from completion of the last exam.

The group also recommended the establishment of an NCUA-State Supervisor Working Group that would recommend further changes for examinations of federally insured, state-chartered credit unions.

The working group also recommended that the agency conduct annual exams for a select group of small credit unions that lack the desired segregation of suties or internal controls to mitigate risk.

The group also proposed reinstituting an optional survey for credit unions to complete after their examinations are completed. And it suggested that the agency improve examiner training.

Under the recommendations, the NCUA would retain the authority to conduct more frequent examinations.

Finally, the task force recommended that effective July 1, 2017, the NCUA begin providing examiners' specific time and scope of the examinations, as well as provide credit unions more advanced notice and improve the coordination of documents tailored to a credit union's risk and products.