Compliance: All NCUA exams will be offsite through May 1

March 30, 2020

The NCUA announced Monday in a Letter to Credit Unions (20-CU-05) that all NCUA examinations will take place offsite through May 1 and this offsite policy will remain in effect until further notice. According to NCUA, it will reevaluate this approach through the duration of the coronavirus disease (COVID-19) pandemic and will notify credit unions of any changes.

The letter also notes examiners will consider the extraordinary circumstances credit unions are facing when reviewing a credit union’s financial and operational condition over the coming months.

NCUA’s order of priorities are:

  1. Credit unions experiencing problems: Field staff will prioritize those credit unions experiencing significant financial or operational problems in our supervision efforts. This includes credit unions that have asked for assistance and those that the NCUA determines may need assistance based on their financial and operational condition.;
  2. Contacting all credit unions: Examiners will contact each credit union periodically to discuss the institution’s operational and financial status, including any associated challenges, and whether any assistance is needed. Outreach that takes place between March 30 and April 10, will serve as the baseline for monitoring of each credit union’s condition;
  3. Conduct Examinations Offsite: Since March 16, agency staff has been working with credit unions to obtain documentation and complete examination procedures offsite. Unless approved by the Office of Executive Director, examiners will not require a credit union to provide information to conduct offsite examination work.

The letter also outlines key procedures for how the NCUA will conduct examinations during the COVID-19 pandemic.

  • Any exceptions to the strict offsite approach must be approved by the NCUA’s Office of the Executive Director;
  • Examiners will work with credit union staff to facilitate the secure exchange of information needed to conduct offsite examination and supervision work, and will be mindful of the impact information requests may have on a credit union experiencing operational and staffing challenges associated with responding to the COVID-19 pandemic;
  • NCUA will generally not be issuing examination reports to credit unions until further notice. If an examination was mostly completed before March 16, 2020, the Regional Director may authorize an examiner to issue a report to a credit union to formally conclude the examination; and
  • Regional offices continue to coordinate examination and supervision efforts with the state supervisory authorities during this time.