The NCUA Appeal Process: A Complete Guide

www.marktreichel.com

https://www.linkedin.com/in/mark-treichel/

 The NCUA Appeal Process: A Complete Guide 

# NCUA Appeal Process with Mark Treichel

## Overview
This episode covers the formal appeal process at NCUA, detailing how credit unions can appeal examination findings and supervisory determinations.

## Key Points About Initial Response to Examination Findings

- Start with the examiner level - resolving issues at the lowest level is most time and cost-efficient
- Common reasons for appeals include:
  - Factual errors not corrected
  - CAMEL code downgrades
  - Requirements that could negatively impact member service
  - Requirements affecting capital building or earnings
  - Requirements impacting liquidity control

## What Can Be Appealed

Material supervisory determinations that may significantly affect:
- Capital
- Earnings 
- Operating flexibility
- Nature/level of supervisory oversight

Specifically includes:
- Composite examination ratings of 3, 4, or 5
- Loan loss reserve adequacy determinations
- Classification of significant loans/assets
- Federal consumer financial law compliance determinations
- Certain waiver requests/additional authority applications

## Appeal Process Timeline

1. Initial Appeal to Regional Director
   - Must file within 30 days of examination
   - Regional Director has 30 days to respond

2. Secondary Appeal Options (if Regional Director denies)
   - 30 days to appeal to either:
     - Office of Examination & Insurance, OR
     - Supervisory Review Committee (recommended path)
   - These bodies have 60 days to respond
   - Can request oral hearing with Supervisory Review Committee

3. Final Appeal to NCUA Board
   - 30 days to file after previous denial
   - Board has 90 days to decide
   - May request oral hearing (not guaranteed)

Total timeline can extend 8-12 months, especially if oral hearings are involved.

## Important Considerations

- Must follow each step sequentially - cannot skip levels
- Component CAMEL ratings cannot be directly appealed, but arguments about components support composite rating appeals
- Document resolutions are negotiable
- Appeals create an administrative record
- Partial victories possible at each level
- Success likelihood typically increases at higher levels
- "Tie goes to the runner" - burden of proof is on the credit union

## Resources

Related regulations:
- Part 746, Subpart A of NCUA regulations
- Preamble to final rule provides important context

## Contact Information
For more information or consultation about appeals:
- Connect with Mark Treichel on LinkedIn
- Contact Credit Union Exam Solutions

*Note: This episode expands on an earlier podcast about the regional appeal process featuring Todd Miller.*