Removing Barriers Blog

Extended Exam Cycle Moves Forward With 2017 Implementation Likely
Posted June 13, 2016 by CUNA Advocacy

Last week, NCUA made some positive developments that suggest it will soon begin implementing an extended exam cycle for most credit unions with under $1 billion in assets. 

NCUA Chairman Metsger, in a letter to House Financial Services Committee Chairman Jeb Hensarling, stated that his goal was to have the extension in place for the 2017 exam cycle.   Chairman Metsger also mentioned details on NCUA’s ongoing process to overhaul the agency’s call report and exam efforts.   

The letter was prompted by Chairman Hensarling’s announcement last week that his Dodd-Frank reform package known as the Financial CHOICE Act would include, among many other important provisions, an 18-month exam cycle for certain credit unions.    

Additionally, last week Rep. Frank Guinta introduced a standalone bill H.R. 5419, which would amend the Federal Credit Union Act to extend the NCUA’s examination cycle to 18 months.   

We have been voicing our concerns with the NCUA exam process to Congress for many years, and these latest developments show that this work is paying off. In fact, we are pleasantly surprised that NCUA is moving even faster than we anticipated.  In previous statements, NCUA officials had indicated that the extended exam cycle would not be in place before 2018 at the earliest.  But with Chairman’s Metsger’s letter last week, we now see that the extended exam cycle will be available to credit unions much sooner.