ALEXANDRIA, Va.–NCUA said it will be continuing its offsite exam program, but indicated exam reports will again be issued.
In a letter to credit unions (LTCU 20-CU-17), NCUA said its offsite policy for all workers and contracted support staff will remain in effect until further notice.
“However, the NCUA may conduct onsite work at a credit union if necessary to address serious or time-sensitive matters,” it said.
NCUA said credit unions will generally not be required to provide information to conduct offsite work, but that the additional information can actually mean less time in future meetings with examiners.
“The more information a credit union can provide for offsite reviews, the more likely the NCUA will not have to return to the credit union until the next examination cycle,” the letter states.
The agency said its regional offices will also continue to coordinate with state supervisory authorities on all related exam issues.
Process Takes Longer
According to NCUA, since it first put its remote exam policy into place on March 16 it has conducted offsite examination work at more than 100 credit unions, acknowledging the process has taken longer on average than on-site exams.
NCUA said the exam reports would be issued for exams completed offsite, adding, “Any corrective actions issued to a credit union will consider the impact of the COVID-19 pandemic on the credit union’s operations and financial condition, and will be prioritized appropriately.”
As a result of the coronavirus pandemic, NCUA said “…examiners will consider whether such efforts elevate, or reduce, a credit union’s risk exposure. If a credit union has taken on additional risk, even if done prudently, this may be reflected in the credit union’s applicable CAMEL and risk ratings.”
‘Mindful of the Impact’
“Examiners will continue to work with credit unions to conduct examination work offsite if the credit union is able to accommodate offsite reviews. Examiners will also be mindful of the impact information requests may have on a credit union experiencing operational and staffing challenges associated with the COVID-19 pandemic,” said NCUA Chairman Rodney Hood in the letter. “Generally, credit unions will not be required to provide information to conduct offsite work. The more information a credit union can provide for offsite reviews, the more likely the NCUA will not have to return to the credit union until the next examination cycle. Regional offices will continue to coordinate with the state supervisory authorities on examination and supervision efforts for federally insured, state-chartered credit unions.”