Lawmakers circulate letter on 18-month CU exam cycle
Feb. 11, 2016 -- Urging NCUA to return to an 18-month exam cycle is the main point of a letter being circulated for signatures by two members of Congress for their fellow lawmakers.
Reps. Frank Guinta, R-N.H., and Rubén Hinojosa, D- Texas – both members of the House Financial Services Committee – are circulating the letter, which asks NCUA Board Chairman Debbie Matz to agree to return an 18-month exam cycle for well-run credit unions.
While the letter thanks the agency for focusing on regulatory relief, it also notes that more can be done to ease credit unions’ regulatory burden. The lawmakers’ letter points out that the agency’s own, recent budget estimates of $6.4 million for employee transportation (including airfare and auto rentals) and $231 million for employee pay could be cut if the NCUA moved to a longer exam cycle.
The letter points out that credit unions are now the only federally regulated depository institution that are subject to a 12-month exam regimen at the federal level, since the three bank regulators -- Office of the Comptroller of the Currency, FDIC and the Federal Reserve Board -- have also taken their first steps toward an extended exam cycle for banks in the wake of congressional action last year.