On October 30, 2019, the NCUA announced Board Member Todd M. Harper’s request for public comment on his proposal to create a dedicated consumer compliance exam team for large, complex credit unions.
In their release, the NCUA explained that their current compliance examinations covering consumer financial protection laws in credit unions with total assets of $10 billion or less differs from other financial institutions regulators. Specifically, other regulators complete regularly scheduled, risk-focused consumer compliance reviews and assign a separate consumer compliance rating outside of the CAMEL process for institutions under their jurisdiction.
As stated by Harper: ““For more than three decades, the NCUA has focused its examination program primarily on safety and soundness reviews…. This policy worked well when the NCUA oversaw a large number of small credit unions serving a limited field of membership with only a few basic financial products, but today’s credit unions are larger and more complex, with 317 credit unions exceeding $1 billion in assets having 71.7 million members.”
To comment on the proposal for a dedicated consumer compliance program, email BudgetComments@ncua.gov by Dec. 2.
See the NCUA press release here.
