ARLINGTON, Va.–NCUA’s disclosure it has spent nearly $40 million to date on the design and implementation of a new examination system requires full disclosure and transparency, according to NAFCU.
As CUToday.info reported here, in response to a question from Sen. Pat Toomey (R-PA) on NCUA’s Modern Examination and Risk Identification Tool (MERIT), which is its virtual exam project, agency Chairman Todd Harper said NCUA has spent $39.7 million to date on the project, the pilot for which has been expanded to more than 100 users.
“We certainly think these are issues to be looked at further,” said NAFCU EVP and General Counsel Carrie Hunt of the disclosures made in the letter to Toomey. “NAFCU supports exam modernization, but we think we need to have effective exams and certainly the amount of money spent on the program needs to be justified and done in a transparent manner.”
Hunt noted NAFCU has in the past expressed concerns that the agency hasn’t been fully clear on what it is working on and the components of the MERIT program, which is scheduled to replace the AIRES system NCUA currently has in place.
Cost Not Only Issue
But cost isn’t the only issue of concern, said Hunt.
“With MERIT, we have expressed concerns in the past relative to data security,” she said. “But first and foremost, we think credit unions need lengthened exam cycles. So, if we’re undergoing all this money and time and effort for a new exam process, then, although we don’t want to see safety and soundness compromised, we ultimately want to see results that this is an easing of the burden on credit unions.”