WASHINGTON—CUNA Wednesday stated its support for the letter from Reps. Frank Guinta (R-NH) and Ruben Hinojosa (D-TX) to NCUA requesting that the agency extend the exam cycle beyond one year for well-run credit unions.
“Lengthening exam cycles for credit unions has been a top priority of CUNA’s for some time, and we have achieved significant and important wins for the benefit of our members,” said the trade association in a statement. “We will continue to fight on behalf of credit unions – whether it is on exam cycle length, exam fairness or regulatory overstep by agencies such as the CFPB. We applaud Representatives Guinta and Hinojosa for their important letter to NCUA Chair Matz, which will keep lengthening exam cycles at the top of the agency’s priority list. Thanks to Paul Gentile, chairman of CUNA’s Examination and Supervision Subcommittee, for his leadership on this vital matter for credit unions.”
In the letter to NCUA Chairman Debbie Matz from Guinta and Hinojosa, which was also circulated among Congress, the representatives requested that NCUA “continue its regulatory relief efforts in 2016, particularly in regards to the credit union examination cycle for well-run institutions . . . We remain concerned that the number of credit unions continues to decline, down by nearly a quarter since 2008, and due in no small part to overly burdensome regulations on the industry.”
Referring to the OCC, FDIC and the Federal Reserve Board taking first steps to move toward an extended examination cycle for banks, the representatives stated, “We strongly encourage the agency to implement a new extended examination schedule for credit unions to help assist in your regulatory relief efforts . . . With that in mind, we ask that you update us on any agency consideration of an extended examination cycle for credit unions. Does NCUA plan to move toward an extended examination cycle for credit unions in 2016? If so, what is your timeline? If not, why not?”