PALATKA, Fla.-A credit union CEO who appealed to Congressional leaders and President Obama for help and flexibility has no issue with NCUA's decision to alter its Reg Flex program.
"This action seems so logical that I can't imagine anyone having issues with it. The environment has changed so dramatically that it would seem imprudent for the NCUA not to take a more pro-active stance on these matters," Putnam County FCU President/CEO Bill Pember told Credit Union Journal.
But the devil, as always, is in the details, Pember conceded. "Now, the question becomes what does a more 'pro-active stance' entail," he asked. "Hopefully it is in the best interests of all concerned."
Pember argued that Reg Flex is serving its purpose, but noted that criticisms that led to NCUA's tweaking was likely caused by a changing set of discriminators and testing ratios. He sees no problem with more frequent and thorough examinations, but he was critical of the consistency of both the exams and the examiners.
"They are often not consistent, and examiners should be aware that time complying with a whim is time when an employee cannot perform a duty that could generate revenue or serve a member," he told the Journal.
However, even as NCUA prepares to roll back some of the provisions of its Reg Flex rule and be "more proactive" about keeping an eye on credit unions, Pember said he also believes the new economic environment should prompt examiners to make allowances for those changes, especially for institutions that are historically rock solid but find themselves in a terrible local economy today.
