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NCUA provides CUs with update on exam relief
In a new Letter to Credit Unions Thursday, the NCUA provided credit unions with an update on its current approach to exams and supervision, indicating that it would continue offsite work until further notice and return to issuing examination reports. NAFCU President and CEO Dan Berger previously called on the NCUA provide additional examination flexibility and make other regulatory adjustments to ensure credit unions can focus on helping members during the coronavirus pandemic.
Berger also discussed exam relief in conversations with Chairman Rodney Hood, and Board Members Harper and J. Mark McWatters.
In the letter, effective June 1, the agency also highlighted that since March 16 examiners have conducted offsite examination work at over 100 credit unions, with a median asset size of $56 million.
"Consistent with long-standing practices, examiners will consider the extraordinary circumstances credit unions are facing when reviewing a credit union’s financial and operational condition and assigning CAMEL and risk ratings," said NCUA Board Chairman Rodney Hood in the letter. "An examination report may acknowledge that the full effects of the COVID-19 pandemic on a credit union’s financial condition and operations remain unknown."
Credit unions experiencing difficulties meeting examination requests are encouraged to proactively reach out to their examiners and ask for a delay or other accommodations.
Additionally, the agency reiterated that it would consistently reevaluate this approach throughout the year to determine whether any changes may be necessary as the pandemic continues.
Read the full letter here. To stay updated on recent developments access NAFCU's easy-to-read table on regulator actions and guidance. To see all NAFCU's coronavirus-related advocacy and resources so far, visit its dedicated coronavirus page.