America’s Credit Unions endorses bill to establish independent exam office
Legislation would set up an independent appeals process for MSDs
America’s Credit Unions is throwing its support behind bipartisan House legislation that would establish an independent office to consider appeals of credit union and bank examinations.
In a Tuesday letter to the bill’s sponsors, Reps. French Hill, R-Ark., and David Scott, D-Ga., America’s Credit Unions President/CEO Jim Nussle wrote, “Your legislation will facilitate transparency and improve consistency in the examination process; provide a resource for financial institutions to express concern about their examination experience; and establish an independent adjudicatory process for the appeal of material supervisory determinations.”
The lawmakers introduced the measure, H.R. 8071, on April 18. The legislation would establish a new Office of Independent Examination Review within the Federal Financial Institutions Examination Council to consider appeals of “Materially Supervisory Determinations,” issues that could significantly affect the operation of a financial institution.
The bill also would require credit union and bank examiners to complete examinations no later than 60 days after the exam exit interview. If an examiner reports a “Materially Supervisory Determination,” the examiner would be required to share the documentation the examiner relied on in making that determination. The legislation would allow a financial institution to appeal that determination to the U.S. Circuit Court of Appeals.
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