ARLINGTON, Va. A new survey by NAFCU found that 24.5% of credit unions believe the NCUA examination process is better than it was in the past twice as many (12.2%) as those who believe the process is worse.
And 8.7% of respondents found the clarity of the exam reports had improved, more than the 6.5% who found the clarity had worsened.
Still, 14.6% of respondents found their examiners to be less competent than in the past, while only 8.3% found them to be more competent.
The executives surveyed in NAFCU’s monthly survey said the median duration for an NCUA examination was 12 days, with a range of four days to 120 days.
While 6.1% of survey participants noted that their most recent examination was shorter than in the past, 16.3% said that it was longer. According to survey participants, an overall median lead time of 10 days was provided, ranging from eight days for credit unions with less than $100 million in assets to 13 days for those with more than $1 billion.
In terms of safety and soundness, the biggest issues focused on by NCUA examiners were: asset liability management (58.5%), credit risk management (39%), member business loans (34.1%) and internal controls (14.6%).
The biggest issues focused on for consumer regulations were: lending and loan modifications (79.4%), and data security and fraud prevention (29.4%).
In addition, 35.4% of survey respondents received a Document of Resolution in their last examination and 58.8% felt the DOR was justified. Of those that did not, most (86%) believed that their examiner had made a minor issue into a major one. The median length of time to resolve a DOR was 30 days.
Of those who were not satisfied with their most recent exam results, 57.1% would be more likely to appeal them if there were an independent appeals process.
