ALEXANDRIA, Va.–In its semiannual report to Congress NCUA’s Office of Inspector General said it currently has four areas under review, including the agency’s oversight of CUSOs and other third-party providers.
All three NCUA board members have in recent months reiterated their belief the agency should have such oversight of third parties, an authority that has gotten pushback from the credit union trade groups. The board members have also repeatedly noted NCUA is the only financial regulator that lacks such authority.
According to the new OIG report, which reviews activity from Oct. 1, 2019 through March 31, 2020:
- The four audits currently under way, in addition to oversight of third parties/CUSOs, include a review of the agency’s consumer complaint program; a review of how the agency has handled personally identifiable information at liquidated credit unions; and its governance of information technology (IT) initiatives.
- December 2021 remains the NCUA’s target for adding an “S” (for sensitivity to market sensitivity) to its CAMEL system. The OIG further recommended revising the L component to include only liquidity content and criteria.
- The OIG said the only material loss review conducted was for the failed C B S Employees Federal Credit Union in California, which cost the National Credit Union Share Insurance Fund some $39.5 million.
- For info: NCUA OIG Semiannual Report to Congress