Credit Union Exam Solutions Presents With Flying Colors

Todd Miller, a veteran with 34 years at the NCUA, shares valuable insights on building effective Asset and Liability Management Committees (ALCO) in credit unions. He discusses the importance of distinct committee charters, member selection, and how board involvement can enhance governance. The conversation also highlights the critical roles of the Chief Risk Officer and the necessity of robust documentation to align with strategic objectives. Miller emphasizes that a well-structured ALCO is key to managing risks and adapting to organizational needs.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/

Set up a call:https://calendly.com/cuexamsolutions/talk-to-mark-about-any-exam-topic?month=2024-10Check out our website:https://calendly.com/cuexamsolutions/talk-to-mark-about-any-exam-topic?month=2024-10Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union passers its exam with flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.LUAs What You Need to KnowKey Points:- LUAs are formal agreements between NCUA and credit unions to address severe problems- Usually issued to troubled credit unions, though occasionally for compliance reasons- Formal LUAs are typically published by NCUA- LUAs describe major issues and required corrective actions with timelines- Language in published LUAs can be very strict and one-sided- Credit unions should seek outside advice when faced with a published LUA- All board members are bound by an LUA, even those who vote against it- LUAs should focus on root causes, not every minor issue- LUAs for established credit unions generally don't have termination dates- In the current economic climate, NCUA may be issuing more LUAsAdvice for Credit Unions:- Understand all requirements and timelines in an LUA before signing- Negotiate terms with NCUA if possible before finalizing- Request reasonable time to review draft LUA with board- Consider consulting attorneys or credit union advisors - Be aware of reputational risks from published LUAs- Recognize that all board members are bound by a signed LUAGuest Experts:- Steve Farrar: Former NCUA examiner and central office staff- Todd Miller: Former NCUA examiner and director of special actionsHost: Mark Treichel, Credit Union Exam SolutionsThis episode provides an in-depth look at Letters of Understanding and Agreement (LUAs) from former NCUA insiders, offering valuable insights for credit union leaders dealing with these formal actions.

In this discussion, veteran credit union consultant John McKechnie shares his expertise on crisis communication strategies. He emphasizes the need for quick and transparent messaging during crises, drawing lessons from the 2008 financial meltdown and the aftermath of 9-11. McKechnie underlines the importance of identifying stakeholders and engaging members proactively. He also introduces the NCUA's conservatorship checklist as a crucial tool for effective coordination. Prepare your credit union to handle crises with confidence and member trust!

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Reach out to learn how we assist our clients with NCUA so they save time and money:https://www.linkedin.com/in/mark-treichel/https://www.marktreichel.com/

Set up a call:https://calendly.com/cuexamsolutions/talk-to-mark-about-any-exam-topic?month=2024-10Check out our website:https://calendly.com/cuexamsolutions/talk-to-mark-about-any-exam-topic?month=2024-10Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union passers its exam with flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.# With Flying Colors Podcast: Fraud and the Necessity of On-Site Exams## Episode SummaryMark Treichel discusses the importance of on-site exams by NCUA (National Credit Union Administration) in detecting and preventing fraud in credit unions. He explores the concept of the Fraud Triangle and explains why a physical presence is crucial in maintaining the integrity of financial institutions.## Key Points1. NCUA Chairman Todd Harper emphasized the need for increased travel budget to accommodate on-site exams.2. Recent credit union failures involved fraud as a contributing factor.3. The Fraud Triangle consists of three elements: pressure, opportunity, and rationalization.4. Physical presence of examiners can deter fraudulent activities by reducing opportunities.5. While virtual examinations have their place, on-site visits remain essential for thorough oversight.## Notable Quotes- "As examiners return on site, they have found an increase in record keeping deficiencies, problems with internal controls, and instances of fraud." - NCUA Chairman Todd Harper- "The opportunities available for committing the fraud motivate the fraudsters to commit the fraud." - Mark Treichel## ConclusionMark Treichel argues that while the pandemic has shown that many examination procedures can be done remotely, NCUA should maintain a balance between virtual and on-site examinations to effectively prevent and detect fraud in credit unions.## Resources Mentioned- Credit Union Exam Solutions: marktreichel.com---*Subscribe to "With Flying Colors" for more insights on achieving success with NCUA.*

Explore the recent changes in NCUA examination policies that could affect larger credit unions. Discover the operational workload implications and the critique of the NCUA's estimation methods. Delve into the skepticism surrounding upcoming budget approvals, questioning their real impact on credit unions. The discussion highlights potential systemic inefficiencies in regulatory processes, raising doubts about whether these changes are genuine improvements or mere public relations moves.

Set up a call:https://calendly.com/cuexamsolutions/talk-to-mark-about-any-exam-topic?month=2024-10Check out our website:https://calendly.com/cuexamsolutions/talk-to-mark-about-any-exam-topic?month=2024-10Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union passers its exam with flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.## Episode SummaryMark Treichel and Todd Miller discuss the importance of good policies in credit unions, their key elements, and how they contribute to high-performing organizations.## Key Points1. Importance of policies in credit unions2. Reasons for having comprehensive policies3. General thoughts on policy implementation4. Common elements of good policies5. The role of board packages in credit union governance## Guest: Todd Miller- Former NCUA employee (1987-2021)- Held roles including examiner, problem case officer, regional capital market specialist, and director of special actions## Detailed Notes### Why Credit Unions Need Comprehensive Policies- Required by regulations- Ensure compliance with laws- Serve as training tools- Set expectations and communicate corporate culture- Establish standards for behavior and performance- Keep management accountable- Help defend against lawsuits### General Thoughts on Policy Implementation- Implementation should happen from the top down- Policies need to be readily accessible to staff- Keep policies current and up-to-date- Document and report policy exceptions- Consequences for not following policies should be clear### Common Elements of Good Policies1. Purpose and objectives2. Establish accountability3. Risk appetite statements4. Limits on individual authority5. System of reports based on risk assessment6. Systematic review dates### Importance of Reporting- Demonstrate compliance with policy- Show trends over time for context- Include early warning indicators- Report on risk limits and policy exceptions### Board Packages- Should contain information the board needs to know, not just wants to know- Reflect the nature and situation of the credit union- In high-performing credit unions, board packages provide transparency on organizational goals and performance## Key Quotes[Include 2-3 key quotes from the "good quotes" section]## Call to ActionSubscribe to With Flying Colors on your favorite podcast app for more insights on achieving success with NCUA. Visit marktreichel.com to learn more about services for credit unions.

Set up a call:https://calendly.com/cuexamsolutions/talk-to-mark-about-any-exam-topic?month=2024-10Check out our website:https://calendly.com/cuexamsolutions/talk-to-mark-about-any-exam-topic?month=2024-10Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union passers its exam with flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.## Guest: Rick MummFormer NCUA employee with over 34 years of experience, including 25+ years working in CURE (Credit Union Resources and Expansion) and its predecessor offices.## Topics Discussed:1. Field of Membership (FOM) Overview   - Types of FOMs: new charters, adding groups, community, underserved areas, TIPs   - Centralization of FOM at NCUA in 20102. Trade, Industry, and Profession (TIP) Credit Unions   - Challenges in defining and approving TIPs   - Limitations of TIPs (occupational only, not associational)3. Underserved Areas   - Popular FOM addition for multiple common bond credit unions   - Distinction between underserved areas and low-income designations4. Low-Income Designations   - NCUA designation process   - Benefits: no limit on business loans, more non-member deposits, access to grants/loans   - Secondary capital opportunities5. Merger Packages   - Process for merging credit unions   - Field of membership compatibility issues   - Emergency mergers6. Bylaws   - Standard vs. non-standard bylaws   - Rick's involvement in writing the 2020 version of NCUA bylaws7. Other Services   - New charters   - Share insurance questions and training## Key Takeaways:- Rick's extensive experience offers unique insights into NCUA's internal processes- His knowledge can help credit unions create efficient, approvable packages- Understanding the nuances of different FOM types is crucial for credit unions## Contact Information:- Rick Mumm: info@rcuservices.com- Mark Treichel: cuexamsolutions@marktreichel.com- Website: www.marktreichel.com## Notable Quotes:"I've seen, kind of grew up with field of membership from when, you know, as an analyst, I process groups, whereas now, you know, groups are processed online.""I know what CURE is looking for, what holds things up, what doesn't, and can be able to say, 'Hey, you know, you can do that, but you're going to add another two, three months onto the package, or we can do this and it'll get approved a lot faster.'"

Set up a call:https://calendly.com/cuexamsolutions/talk-to-mark-about-any-exam-topic?month=2024-10Check out our website:https://calendly.com/cuexamsolutions/talk-to-mark-about-any-exam-topic?month=2024-10Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union passers its exam with flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.# With Flying Colors Podcast: Equal Credit Opportunity Act (ECOA) Part Two## Episode SummaryIn this episode, Mark Treichel continues his discussion with Joe Goldberg, diving deeper into the Equal Credit Opportunity Act (ECOA) and Regulation B. They focus on the second primary purpose of ECOA: encouraging the informed use of credit through adverse action notices.## Key Points1. Adverse Action Notices   - Purpose: Inform applicants of reasons for credit denial or less favorable terms   - Must provide specific reasons in detail   - Optimal to provide 3-4 main reasons for adverse action2. Special Purpose Credit Programs   - Allow creditors to meet credit needs of specified classes of persons   - Different rules for for-profit and non-profit organizations3. Department of Justice Referrals   - Required when there's reason to believe an institution has engaged in a pattern of illegal discrimination   - DOJ guidance available for identifying practices that may lead to referrals4. New ECOA Section (Effective August 29, 2023)   - Requires collection and reporting of small business lending data to CFPB   - Applies to creditors with at least 100 originations to small businesses for each of the prior 2 years5. Enforcement and Legal Actions   - NCUA enforces for federal credit unions   - Private actions allowed, including class actions6. Compliance Best Practices   - Familiarize with ECOA and Regulation B   - Implement sufficient compliance management system   - Provide regular training for staff involved in lending   - Oversee third-party vendors   - Conduct self-testing and audits## Resources Mentioned- NCUA Fair Lending Guide- NCUA Regulatory Alerts and Letters to Credit Unions- Federal Consumer Financial Protection Guide on NCUA website- CFPB website (consumerfinance.gov) - Fair Lending section## Guest InformationJoe Goldberg: Attorney with 40 years of experience, former NCUA staff member, and consumer compliance expert.## Hosted ByMark Treichel