CUNA urges action on exam improvements bill
In a letter to the chairman of the House Financial Institutions subcommittee on consumer credit, Rep. Shelly Moore Capito (R-W.Va.), and its and ranking member, Rep. Carolyn Maloney (D-N.Y.)., CUNA reiterated its strong support for the bill. H.R. 3461 was referred to Capito's subcommittee last week, and was introduced in the House last fall. It has 66 cosponsors.
The legislation, which would allow financial institutions to appeal examination reports from federal financial regulators and would provide further clarity to those regulators, represents "a firm step in the right direction toward ensuring that the federal regulators conduct fair exams which are consistent with the law and regulation and ensure safety and soundness," CUNA said. CUNA last fall said the introduction of this bill showed that Congress is taking the examination concerns of credit unions and others seriously.
The legislation would give credit unions and other financial institutions access to decision-making information gathered in their exams and codify exam policy guidance for financial regulators. Credit unions will also be particularly interested in:
• Portions of the bill that would establish a new Office of Examination Ombudsman to investigate complaints about examinations and look at examination quality assurance;
• Language that would require regulatory agencies to list any information that was used to support a certain regulatory action or request; and
• Language that would allow financial institutions to appeal any material supervisory determination in an exam report to an independent administration law judge.
CUNA President/CEO Bill Cheney said the bill seeks to "address the concern that examiners are in some cases requiring credit unions and other financial institutions to take action that is not required by law or regulation and in other cases prohibiting these institutions from taking action that is otherwise permitted by law or regulation."