Credit Union Exam Solutions Presents With Flying Colors

Key Points:

1. Recent NCUA exam focus areas:
   - Interest rate risk and liquidity risk (2022-2023)
   - Board governance 
   - Commercial lending programs
   - Loan concentrations
   - Consumer compliance, especially for third-party relationships

2. Board governance issues:
   - Increased expectations for board oversight and accountability
   - Focus on risk appetite and concentration risk limits
   - Need for analytical support and modeling for risk limits

3. Communication challenges:
   - Frustrations with examiner communication and expectations
   - Importance of documenting discussions and agreements with examiners

4. Enterprise Risk Management:
   - Growing expectations for ERM programs, even for credit unions under $10 billion
   - FDIC guidance on corporate governance as a useful resource

5. Stress testing requirements:
   - Increasing expectations for analytical support of policy limits
   - Can be costly and resource-intensive for credit unions

6. Information security:
   - Ongoing area of focus, likely to increase given recent high-profile incidents
   - May lead to more formal exam findings (DORs) on cybersecurity issues

7. Third-party vendor management:
   - Renewed emphasis on oversight of third-party relationships
   - Recent incidents may fuel push for NCUA third-party vendor authority

8. Looking ahead:
   - Potential for increased NCUA staffing and resources for consumer compliance
   - Importance of credit union communication plans for crisis situations

Guests: Todd Miller and Steve Farrar, former NCUA executives and current credit union consultants

Host: Mark Treichel

The podcast provides insights into current NCUA examination trends and offers advice for credit unions on navigating regulatory expectations.