NCUA examiners contacting FCUs through May 18 on credit risks

May 4, 2020

NCUA examiners will contact federal credit unions between now and May 18 to review a list of questions sent in an agency Letter to Credit Unions (20-CU-12) recently. According to NCUA, this is the next phase of credit union outreach to understand challenges faced by credit unions due to the coronavirus disease (COVID-19) pandemic, focusing on potential emerging credit risks.

“Many of the questions ask for your best estimates only; we do not anticipate significant research will be necessary. As with all interactions with the NCUA, I encourage you to have an open dialogue with your examiner, ask questions, and express challenges you may be facing,” wrote NCUA Chairman Rodney Hood. “The NCUA will continue to be mindful of the impact of information requests on any credit unions experiencing operational and staffing challenges associated with responding to COVID-19.

“You are helping us understand the challenges credit unions are facing so we can identify or develop the assistance you need,” he added.

The first phase of NCUA’s outreach focused on operation status and liquidity. During this outreach, NCUA received insights that include:

  • Operational Status – Almost all credit unions report full or partial service to members. A few credit unions that have closed locations due to their sponsors being closed (including school districts and churches, among others) are continuing to serve their members’ needs on an appointment basis.
  • Lobby Service – Many credit unions noted their lobbies are generally closed, but the vast majority are offering lobby appointments. Credit unions that are not offering lobby appointments are providing services using a drive-thru, or offering appointments at another location.
  • Liquidity Planning – Few credit unions report a need to increase borrowings.