Compliance: Changes in NCUA exam procedures for 2017

The NCUA promised enhanced examination planning procedures and scheduling changes for 2017, and outlined those changes in a letter to credit union (16-CU-12) sent in the final days of 2016. The extended examination cycle applies to federal credit unions and federally insured state-chartered credit unions that meet certain eligibility requirements.

For federal credit unions, an extended examination cycle will begin between 14 and 20 months from the prior examination completion date, as long as the credit union meets all 5 five eligibility requirements.

Those requirements are:

  • Assets less than $1 billion;
  • CAMEL code 1 or 2, in both the composite rating and the management component rating;
  • “Well capitalized” under prompt corrective action (PCA) regulations;
  • No outstanding documents of resolution (DOR) items related to significant recordkeeping deficiencies; and
  • Not operating under a formal or informal enforcement or administrative order, such as a cease and desist order, letter of understanding and agreement, preliminary warning letter, or a PCA directive.

Examinations will occur between 8 and 12 months from the prior examination completion date for federal credit unions that do not meet all of the requirements.

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