ARLINGTON—While NCUA is making improvements to the examination process, a new report indicates that credit unions recognize the improvements that have been made, but also believe more can be done.
According to the NAFCU November Economic & CU Monitor, one issue is notification in advance of an exam. While more credit union respondents to the latest survey indicated that their most recent exam was shorter than previous exams, they also noted a decrease in how much notice they received in advance of their exams, down an average of 20 days between 2015 and 2016.
The report indicates that 61.9% of respondents said they were notified in advance of the areas of focus for their upcoming exam; down from 76.9% in 2015.
NCUA announced in May that it was going to evaluate the agency’s examination and supervision program through the Exam Flexibility Initiative. At the agency’s open board meeting in November, the board approved 10 recommendations from the initiative’s working group, including an extended 18-month exam cycle for well-run, healthy credit unions with assets of less than $1 billion.
When asked about the level of experience of their most recent examiners, survey respondents reported mixed results, with 22.7% indicating their examiners were either “somewhat” or “minimally” experienced.
Despite a more positive rapport with examiners (54.5% said their examiner was “very easy” to work with compared to 50% in 2015), many credit unions said that a more fair and transparent dispute resolutions process is needed. Of the respondents, 52.4% are in favor of an independent appeals process for disputing exam results.