NCUA is making improvements to Region V, according to director Cherie Freed, who took up the post in May.
That region, headquartered in Tempe, Ariz., includes nine states plus Guam. Speaking during a a panel discussion at the California and Nevada CU Leagues' recent annual meeting, Freed said it has the smallest number of units, but has most combined assets of any region.
"The average asset size of our credit unions is almost double that of any other region," she said.
Region V has "solid" net worth, with a few pockets NCUA is watching closely, Freed said. Only 0.6% of assets are in CAMEL 4, "so much different from five or six years ago. Loan growth is higher than national average and is strong in all categories."
"Indirect lending is an area we are watching closely," said Freed. "We are starting to see delinquencies and charge-offs increasing, so we are doing more analysis by credit union."
Freed outlined NCUA's exam priorities for Region V. She said it is working on a letter to credit unions that will discuss cybersecurity. In addition, BSA [Bank Secrecy Act] will continue to remain a "very high priority," as will interest rate risk.
"NCUA is changing procedures Jan. 1, including rolling out advisory tools. Internal controls will continue to be hot topics. Military Lending Act goes into full compliance October 2017. CUSO reporting will be examined next year. MBL rule Jan. 1, so examiners will be looking at credit union procedures."
Even if Chairman Metsger's Exam Flexibility Initiative is approved, it will not go into effect in 2017, Freed added, noting credit unions should not expect to go unexamined next year.
