Credit Union Exam Solutions Presents With Flying Colors

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Chairman Hauptman’s Statement on Appointment to PCAOBALEXANDRIA, VA (January 30, 2026) – National Credit Union Administration Chairman Kyle S. Hauptman issued the following statement after being named as a member of the Public Company Accounting Oversight Board (PCAOB).“I am grateful to President Donald J. Trump and Chairman Paul S. Atkins for their faith in me and for the appointment to the PCAOB,” said Chairman Hauptman. “I intend to remain in my role as NCUA Chairman until my successor is appointed by President Trump and confirmed by the U.S. Senate.”

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/In this episode of With Flying Colors, Mark Treichel is joined by former NCUA senior leaders Todd Miller and Steve Farrar for a deep dive into NCUA’s 2026 Supervisory Priorities Letter — and what it means in the real world for credit unions heading into the next exam cycle. Deep Dive on NCUA Priority Lett…With significant staffing reductions at the agency and a shift toward more “risk-based” supervision, the group discusses whether exam programs will truly become more tailored — or whether credit unions should expect more conservative ratings, more findings, and less dialogue.The conversation also explores what’s emphasized, what’s missing, and how operational realities inside NCUA may shape supervision more than policy statements.Key Topics Discussed🏛️ NCUA Operations and StaffingHow a 27% reduction in staff could affect exam consistency and depthWhy less-experienced exam teams may lead to more conservative CAMEL ratingsConcerns about “CYA supervision” and addressing symptoms rather than root causes📊 Balance Sheet Management and Credit RiskWhy industry data does not support claims of worsening asset qualityContinued focus on credit concentrations and underwriting practicesWhat outsourcing of lending and collections may trigger in exams💧 Liquidity and Interest Rate RiskWhy interest rate risk is often overstated as a failure driverOngoing scrutiny of liquidity forecasting modelsGrowing competition for deposits from fintechs and non-banks💵 Earnings, Capital, and Rising ExpensesWhy operating expenses are growing faster at credit unions than banksTechnology investments, staffing costs, and post-COVID catch-up spendingCapital planning expectations despite fewer references in the priority letter⚙️ Operational Risk, Payments, and TechnologyIncreasing complexity of payment platforms and third-party integrationsWhy internal audit functions matter more than everRisks created by rapid fintech adoption🕵️ Fraud Prevention and Member ProtectionAI-driven fraud and voice spoofing risksWhy protecting members is now as critical as protecting institutionsReputation risk from scams and social media amplification📋 Compliance and What’s MissingNotable reduction in consumer compliance emphasisBSA remains a regulatory constantWhat the absence of certain topics may signal about regulatory priorities🎙️ Practical Exam StrategyWhy recording exit conferences can protect credit unionsHow appeals and documentation can matter more in constrained environmentsWhy This Episode MattersNCUA’s priority letters set expectations — but exam outcomes are often shaped by staffing, experience, and regional risk perceptions. As the agency continues to restructure, understanding how policy meets practice has never been more important.This episode offers insider perspective on:How exam approaches may shift in 2026Where credit unions should expect closer scrutinyWhy communication and documentation will matter more than ever

In this emergency update of With Flying Colors, Mark breaks down a newly proposed NCUA rule that could meaningfully reduce barriers to serving on a federal credit union board.The proposal would allow federal credit unions to reimburse or directly pay reasonable dependent care costs for volunteer officials when those costs are incurred while attending board meetings or performing official duties — including, potentially, training and conferences.This is a narrow but important change that reflects rising childcare and eldercare costs, declining volunteerism, and the increasing demands placed on credit union boards.Mark also shares brief updates on the Central Liquidity Facility (CLF), NCUA’s regulatory simplification efforts, and what’s coming next on the podcast following recent discussions at a credit union conference cruise.🔍 What the Proposed Rule Would DoApplies to federal credit unions only (state charters follow state law)Allows reimbursement or direct payment of:ChildcareAdult dependent care (elder care, disabled dependents)Covers costs incurred while:Attending board meetingsPerforming official duties (which may include training and conferences)Applies only to volunteer officials, not paid executives🚫 What the Rule Does Not DoDoes not allow reimbursement for:Lost wagesPaid leaveIndirect costs of volunteeringDoes not change compensation rules under the Federal Credit Union ActDoes not require credit unions to reimburse these costs — policies remain optional and discretionaryDoes not change IRS tax treatment — consult tax professionals for reporting requirements💡 Why This MattersChildcare costs have increased more than 200% since 1990Volunteer participation has declined significantly since pre-pandemic levelsFederal credit union boards:Must meet at least 12 times per yearCannot generally be compensatedThis proposal may help:Attract younger and working-age professionalsSupport caregivers and single parentsImprove diversity of experience and perspective on boards🧭 What NCUA Is Asking for Public Comment OnNCUA is inviting industry feedback on:Whether reimbursement should be limited to temporary or incremental costsWhether training and conference travel should clearly qualify as official dutiesDocumentation and internal control standardsBest practices from state-chartered credit unionsCredit unions and board members are encouraged to submit comments during the open comment period.🔜 What’s Coming Next on the PodcastA follow-up episode with Mark’s team discussing:NCUA’s 2025 Supervisory Priorities LetterWhat it really means for exams and operationsCoverage of NCUA’s upcoming webinar on supervisory priorities (February 19)Continued “emergency update” episodes when time-sensitive issues break

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/In this special preview episode of With Flying Colors, Mark Treichel tees up an upcoming live, on-stage discussion from the Florida Q’s Cruise with team members Steve Farr and Todd Miller.Just days before the cruise, NCUA released its 2026 Supervisory Priorities Letter, and as always, that letter gives us important clues about what examiners will be focused on in the year ahead — and just as importantly, what’s driving examiner behavior behind the scenes.This episode serves as a primer for the deeper, post-cruise discussion, where we’ll incorporate real-time feedback and questions from credit union leaders attending the cruise.🧭 Big Picture Theme: NCUA in ChaosBefore diving into technical priorities, Mark frames the conversation around what many credit unions are experiencing operationally:Leadership instability and fewer board actionsRetirements, buyouts, and staffing lossesRevolving and often less-experienced examinersExams prioritized over approvals and strategic requestsBottom line:Chaos upstream is driving impact downstream — and that reality shapes how exams feel, how findings are delivered, and how long approvals take.📌 What’s in the 2026 Supervisory Priorities Letter?Mark walks through the major categories NCUA highlighted and why they matter:🟦 Lending / Credit RiskDelinquencies and charge-offs at decade highsFocus on underwriting, concentrations, and workoutsContinued scrutiny of commercial real estate and indirect lending🟦 Liquidity & Interest Rate RiskStress testing assumptions under closer reviewStructural liquidity constraints getting more attentionAlignment between balance sheet strategy and risk appetite🟦 Earnings & Capital AdequacySustainability of earnings under stress scenariosCapital planning tied directly to risk profilesMore forward-looking analysis expected in exams🟦 Payment Systems (Back as a Headline Topic)Real-time payments and complex integrationsVendor risk, data exposure, and cyber vulnerabilitiesGovernance and internal controls over payments ecosystems🟦 Fraud Prevention and DetectionInternal controls and separation of dutiesInsider abuse explicitly called outExam procedures being updated to reflect evolving fraud risks🟦 BSA / AML Compliance Risk ManagementShift away from broad consumer compliance narrativeStronger focus on risk-based AML programsPrograms must be tailored to actual institutional risk🔄 What’s Notably Different from Prior Years?Mark also highlights important shifts compared to earlier supervisory letters:Cybersecurity is no longer a standalone headline — now embedded in Operational Risk and PaymentsConsumer financial protection is not emphasized as a top categoryFraud and payment systems return after being absent for several yearsGovernance expectations are increasingly embedded in every risk areaThese changes align with what many credit unions are already experiencing in exams — more findings tied to process, oversight, and documentation, not just numbers.🎤 What’s Coming After the CruiseDuring the Florida Q’s Cruise, Mark, Steve, and Todd will be discussing:What credit unions are actually seeing in recent examsWhere examiner expectations are rising fastestHow governance findings are being framedWhat boards should be asking management right nowHow to manage regulatory uncertainty proactivelyAfter the cruise, a full follow-up episode will bring those insights back to the broader audience.🎯 Key TakeawayThe risks themselves haven’t changed dramatically — but NCUA’s capacity, processes, and delivery of supervision have.Credit unions that adapt their governance, documentation, and strategic planning to that reality will be better positioned to manage both exam outcomes and approval delays in 2026 and beyond.You can’t fix NCUA’s chaos — but you can manage how it impacts you.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/The clash between President Trump and Federal Reserve Chair Jerome Powell has now expanded beyond interest rates — and into a $2.5 billion building renovation at the Fed.Some see waste. Some see politics. Most people just see a number that’s hard to comprehend.In this episode, I take a middle-ground look at what’s really going on:• Why large government construction projects almost always cost more than planned • Why political egos inevitably get involved • And why $2.5 billion still deserves serious public context and scrutinyUsing real-world comparisons — from stacks of dollar bills reaching into space, to thousands of apartments, to centuries of spending at $1,000 an hour — we reset the conversation around scale, transparency, and accountability, without turning it into a partisan fight.Because when budgets get this big, math matters more than megaphones.Key Topics CoveredWhy billion-dollar numbers break our intuitionConstruction overruns: normal, but not meaninglessHow political power struggles complicate budget debatesThe opportunity cost of multi-billion-dollar projectsWhy public institutions owe the public real financial contextWho Should ListenCredit union and bank leadersBoard membersPolicy and compliance professionalsAnyone who wants less political theater and more financial reality

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/President Trump has called for a one-year cap on credit card interest rates at 10%. It’s a headline-grabbing proposal — but can he actually do it, and what would it really mean for consumers, banks, and credit unions?In this episode, Mark Treichel breaks down:Why presidents can “call for” caps but can’t impose them unilaterallyWhy credit card rates are high in the first placeHow a 10% cap could reduce access to credit, especially for lower-income borrowersWhy rewards programs, grace periods, and credit limits could all be at riskHow credit unions would be affected differently than large banksWhy well-intended caps can push borrowers toward much worse alternatives like payday lendingBottom line: It’s good politics, but it could be very bad policy — with consequences that hit the very people it’s supposed to help.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/NCUA exam reports often contain more than meets the eye.Examiner findings, supplementary facts, and documents of resolution may look like routine supervisory language — but each serves a distinct purpose and sends a different signal to credit union boards and management.In this episode of With Flying Colors, Mark Treichel is joined by former NCUA senior leaders Steve Farr and Todd Miller to break down how exam reports are structured, how issues escalate, and what credit unions should be paying attention to long before enforcement actions appear.Drawing on decades of NCUA experience, the discussion explains how examiners decide where issues belong in the report, why volume matters as much as severity, and how governance and communication failures often sit at the root of repeat findings.This is an evergreen episode for any credit union executive, board member, or compliance professional who wants to better understand what NCUA is really saying — and how to respond effectively.In This Episode, We Discuss:The practical differences between examiner findings, supplementary facts, and documents of resolutionWhy a long list of “minor” findings can be a major warning signHow supplementary facts are used to signal emerging risk and specialist concernsWhat elevates an issue into a document of resolutionThe SMART framework examiners are expected to use — and where it breaks downHow unresolved issues contribute to CAMEL rating pressureWhy corporate governance increasingly appears in exam reportsThe role communication plays in preventing escalationWhat boards should ask before approving a document of resolutionWho Should Listen:Credit union board membersCEOs and executive leadership teamsCompliance, risk, and governance professionalsCredit unions preparing for an upcoming NCUA examInstitutions experiencing repeat findings or growing examiner scrutinyKey Takeaway:NCUA exam reports are not just compliance documents — they are communication tools. Understanding how examiners signal concern helps credit unions prioritize issues, respond proportionately, and avoid unnecessary escalation.About the Host:Mark Treichel is a former senior NCUA executive and the founder of Credit Union Exam Solutions. With more than three decades of regulatory experience, Mark helps credit unions understand NCUA expectations and navigate examinations with confidence.

This is a classic episode of With Flying Colors—and a rare one that steps slightly outside the credit union lane for a reason.As teamwork becomes an increasingly critical theme heading into 2026, this conversation felt worth revisiting.In this episode, Mark sits down with Joe Jacoby, an Olympic gold medalist and performance coach, to explore what high-performing teams really look like when conditions are uncertain and pressure is high.While the setting is the Olympic Games, the lessons translate directly to leadership teams, boards, and organizations navigating complexity, change, and accountability.This conversation isn’t about motivation—it’s about execution:How trust is built before it’s neededWhy great teams communicate without noiseHow different strengths actually work together under stressAnd why teamwork isn’t soft—it’s strategicIf you lead, serve on a board, or work as part of a management team, the insights here are as relevant today as when this episode first aired.In this episode, we discuss:What Olympic-level teamwork looks like in real timeWhy preparation matters more than celebrationHow unspoken communication develops inside high-trust teamsThe role of diversity of thought in performanceLessons leaders can apply long after the competition ends

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/In this quarterly roundtable episode of With Flying Colors, Mark Treichel is joined by former NCUA executives Dennis Bauer, Steve Farrar, and Todd Miller to break down the NCUA Q3 2025 Quarterly Credit Union Data Summary.The discussion highlights a key theme: the credit union system is gradually returning to a more normal operating environment after years of rate shocks, pandemic liquidity, and balance-sheet distortion.Key topics include improving net interest margins, rising non-interest expenses, and why ROA gains lag margin recovery. The panel examines growing pressure in auto and credit card portfolios, increased repossessions, and what delinquency trends suggest heading into 2026. They also explore liquidity stabilization, shifts in share mix, and renewed investment risk-taking as some credit unions bet on future rate cuts.Additional insights include CAMEL rating trends, HELOC utilization growth, differences between credit union and community bank performance, and what examiner behavior may look like amid NCUA staffing constraints.This episode is designed for credit union executives, board members, and risk leaders looking for plain-English interpretation of regulatory data—without spin or hype.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/NCUA has launched a new Deregulation and Simplification Project, signaling a shift toward clearer, more flexible rules—without weakening safety and soundness.In this episode of With Flying Colors, Mark Treichel breaks down the four proposed regulatory changes released by NCUA and explains what they mean in practice for credit unions, boards, and exam preparation.Rather than a wholesale rewrite, this package focuses on clarity, structure, and regulatory housekeeping—especially around audits, corporate credit union governance, and cybersecurity guidance.Key topics covered:Updates to Supervisory Committee audit rules (Part 715)Technical and governance clarifications for corporate credit unionsWhy cybersecurity guidance is moving out of regulation and into Letters to Credit UnionsWhat’s not changing—despite the headlinesHow this project fits into broader NCUA budget and structural discussionsMark also shares perspective on why moving guidance out of the CFR matters—and what credit unions should (and shouldn’t) do next.More regulatory developments are coming fast, including NCUA’s upcoming board meeting and budget discussions. Stay tuned.