Why Your CAMEL Code Is Even More Important Now

www.marktreichel.com

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

📝 Episode Summary:

In this post-Memorial Day episode, Mark dives into NCUA’s latest insurance fund update with a sharp focus on CAMEL codes—and why they matter more than ever in today's regulatory landscape. With NCUA facing staffing cuts, hiring freezes, and leadership questions, your credit union's CAMEL rating may determine how much attention (or relief) you're about to get.

Mark walks through key takeaways from the data, trends in ratings across credit union size categories, and why being a CAMEL 1 or 2 could lead to fewer exams—while CAMEL 3, 4, and 5 credit unions face a leaner, potentially more stressed NCUA.

🔑 Key Topics Covered:

• Overview of NCUA's recent briefing and CAMEL code performance
• Declines in CAMEL 3s, 4s, and 5s—what’s real and what’s merger-driven?
• Increased risk for complex credit unions ($500M+)
• Impact of staffing reductions on supervision intensity
• Why being a CAMEL 1 or 2 may now mean more operational flexibility
• What Kyle Hauptman said—and didn’t say—about being the only board member
• Speculation on NCUA’s future organizational structure

📌 Takeaways:

• CAMEL codes improved overall, but large credit unions saw some deterioration.
• NCUA’s downsizing and hiring freeze will shift how and when exams occur.
• Your credit union’s CAMEL code now plays an even bigger role in how much NCUA interacts with you.
• Good communication and organized documentation are essential if you're a CAMEL 3–5 credit union.
• The regulatory future may hinge on ongoing lawsuits and Supreme Court decisions about agency power.

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