Credit Union Exam Solutions Presents With Flying Colors CAMELS Treading Water: What the Insurance Fund Numbers Reveal
Sep 23, 2025
Dive into the latest insights from NCUA's board meeting with revelations about CAMELS ratings, showing slight improvements but indicating a 'treading water' status. With 27% of staff taking buyouts, the capacity for examinations is at risk, potentially leading to fewer exams and faster upgrades of struggling credit unions. Hear about budget implications and a possible reduction in exam costs for future evaluations. The removal of risk ratings from reports could change how CEOs and credit unions navigate their strategies moving forward.
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CAMELS Movement Shows ‘Treading Water’
- CAMELS 4s and 5s slightly declined while CAMELS 3s rose as some troubled credit unions were reclassified.
- Mark Treichel interprets this as the insurance fund “treading water” with an overall healthy picture under 10% of insured shares in 3/4/5 codes.
Staff Cutbacks Will Soften Exam Pressure
- NCUA lost 27% of staff to buyouts and will not replace them under the hiring freeze, which affects examination capacity.
- Treichel predicts fewer exams, faster CAMELS upgrades, and less aggressive downgrades because the agency lacks resources.
Prepare For Less Frequent But Impactful Exams
- Expect NCUA to be more judicious with CAMELS downgrades and follow-ups due to limited staff.
- Prepare by documenting risk controls and be ready to address findings promptly when examiners do engage.