Credit Union Exam Solutions Presents With Flying Colors

In this discussion, Todd Miller, a former NCUA employee with 34 years of experience, shares invaluable insights into effective board packages for credit unions. He emphasizes the balance between what boards need versus want to know, highlighting the importance of clear, concise reports. Todd discusses quantitative and qualitative reporting, suggesting dashboard summaries for easy interpretation. He also touches on aligning strategic plans with board reporting and the necessity of transparency for compliance and informed decision-making.

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 SummaryIn this episode of With Flying Colors, host Mark Treichel welcomes back Joe Goldberg, a veteran attorney with 40 years of experience and former NCUA official. They dive deep into the Equal Credit Opportunity Act (ECOA) and its significance in fair lending practices for credit unions.## Key Points Discussed- The purpose and significance of ECOA and Regulation B- NCUA's increased focus on fair lending examinations- Coverage of ECOA across various forms of credit- The nine prohibited bases for discrimination in lending- Specific examples of potential ECOA violations in credit union practices## Highlighted Quotes- "ECOA requires creditors to make decisions related to providing credit and the terms of credit based solely on credit related factors." - Joe Goldberg- "NCUA has increased its focus on fair lending in the last several years. They even started when I was there. I left there at the end of 2021, but that's still true. And, in fact, the agency is expanding its fair lending examination program." - Joe Goldberg## Important Takeaways for Credit Unions1. Review policies and procedures for potential age or marital status discrimination2. Be aware of the expanding fair lending examination program at NCUA3. Understand the nuances of the nine prohibited bases for discrimination4. Consider the risks associated with Department of Justice referrals for ECOA violations## Next EpisodeTune in for Part 2 of this discussion, where Mark and Joe will continue their exploration of ECOA, including special purpose credit programs and the referral process to the Department of Justice.## About the GuestJoe Goldberg is a former NCUA official who led the division responsible for HMDA, fair lending, and consumer compliance. With 40 years of experience as an attorney, he now works as a consultant in the credit union industry.## Resources Mentioned- NCUA Letter to Credit Unions: 22-CU-04 (February 2022)- Equal Credit Opportunity Act (ECOA)- Regulation B## Get in TouchFor more information on achieving success with NCUA, visit [marktreichel.com](https://marktreichel.com).

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Host: Mark TreichelGuests: John McKechnie and Jeff PacinoKey Topics Discussed:1. Leadership Changes:- Discussion of Trump's election victory and its potential impacts- Changes in Senate Banking Committee leadership with Sherrod Brown's defeat- Tim Scott expected to chair Senate Banking Committee- Elizabeth Warren potentially becoming ranking Democrat on Banking Committee2. NCUA Board Implications:- Anticipated leadership transition from Chairman Todd Harper to Kyle Hauptman- Analysis of NCUA Board dynamics and chairmanship powers- Discussion of Hauptman's term expiring in August 2025- Need for credit union industry experience on the NCUA Board3. Critical Industry Issues:- Potential tax reform efforts in 2025- Importance of credit union advocacy and GAC attendance- Changes in regulatory approach under new leadership- Consumer compliance and budget considerations4. Political Dynamics:- Discussion of Republican control of Congress- Two-year window for administration priorities- Importance of maintaining relationships across party lines- Changes in House Financial Services Committee leadership with McHenry's retirementExpert Analysis: The episode features experienced regulatory and industry veterans providing insights on navigating the changing political landscape and its implications 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.With Flying Colors Podcast: Understanding Credit Culture with Vin Vieten## Episode SummaryIn this episode, host Mark Treichel interviews Vin Vieten, a retired senior credit specialist from NCUA, about credit culture in credit unions. Vin shares insights from his extensive experience in commercial banking, industry, and regulation, offering valuable perspectives on developing and maintaining a strong credit culture.## Key Topics Discussed- Definition of credit culture and its importance in credit unions- Who is responsible for establishing credit culture- How to implement and reflect credit culture in policies and practices- The role of credit culture in credit proposals and actions- Balancing member service with safety and soundness in lending## Notable Quotes- "What credit culture is, is your approach to providing credit to your customers, your members... It's how you're going to, why you're providing commercial financing and, and then really how you're going to do it."- "We're not here just to say yes or no to loans. We're here to provide the right financing for that borrower."- "Appropriate financing for the borrower. That's really what your job is. And that means financing that is paid back within the ability that's structured."## Guest BioVin Vieten is a retired senior credit specialist from the NCUA with 11 years of experience at the agency. Prior to his role at NCUA, Vin worked as a commercial banker, senior loan officer, and controller for a large ready-mixed concrete company, giving him a unique perspective on all sides of the commercial lending process.## Resources Mentioned- NCUA regulation 723 on Member Business Loans and Commercial Loans- Preambles to the proposed and final rules on commercial lending (July 2015 and February 2016)## Upcoming TopicsMark teases future episodes covering:- Credit proposals- Underwriting- Regulatory resources- Credit risk rating systems- Global cash flow analysis## Get in TouchFor follow-up questions or to discuss how Mark and Vin can assist your credit union:- Email: CUExamSolutions@marktreichel.com- Website: www.marktreichel.com

Steve Farr and Todd Miller, both former NCUA employees with extensive backgrounds in credit union risk management, delve into the intricacies of risk appetite and frameworks. They discuss how a strong risk culture is essential for effective governance and emphasize the importance of documented risk appetite statements. The trio of defenses in risk management is explored, illustrating how frontline units, risk management, and internal audits work together. They highlight best practices, including transparency in communication and the need for action plans when approaching risk limits.

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 discusses Credit Union Service Organizations (CUSOs) and CUSO examinations, drawing from his experience as a former NCUA Regional Director. He compares CUSO exams to credit union exams and provides insights into what credit unions and CUSOs can expect during these reviews.## Key Points1. CUSO exam frequency and types:   - Less frequent than credit union exams   - Three types: integrated exams, standalone exams, and independent reviews2. NCUA's authority to examine CUSOs:   - Based on agreements between credit unions and CUSOs   - Allows NCUA complete access to CUSO books and records3. Types of CUSOs likely to be examined:   - Those offering new or growing services (e.g., commercial loans, student lending, FinTech)4. NCUA's focus during CUSO exams:   - Systemic risks   - Individual credit union risks   - New or growing services5. Documents NCUA may request:   - Strategic plans   - Disaster recovery plans   - Organizational charts   - Board minutes   - Customer lists   - Policies and procedures6. Corporate veil considerations:   - Ensuring independence between CUSO and credit union operations7. "Primarily serves" requirement:   - Case-by-case determination   - Based on totality of circumstances## Notable Quotes"Getting a CUSO review, if your books and records are clean and your services are well documented and you can do a good job of controlling the narrative when NCUA comes in, when that happens, it's actually, can be a plus."## Upcoming NCUA Developments- Proposed rule on eligible obligations and loan participations expected between July and September## Resources Mentioned- Credit Union Exam Solutions: marktrico.com- CUSO Law: cusolaw.com- Previous podcast episode with Brian Lauer on CUSO regulation changes (episode number to be added in show notes)## Call to ActionSubscribe to "With Flying Colors" on your favorite podcast app for more expert insights on achieving success with NCUA.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Guest Speakers:- Todd Miller - Steve Farrar Key Topics Covered:1. Definition of Corporate Governance- Set of processes, customs, policies, and laws affecting how a corporation is directed and controlled- Structure of rules, practices, and processes that determine corporate culture- Board responsibility for setting corporate culture2. Resources for Directors- NCUA has limited specific resources on corporate governance- FDIC resources recommended:  * Pocket Guide for Directors  * 2016 Supervisory Insights  * Proposed guidance for larger institutions  * YouTube video on corporate governance3. Key Board Responsibilities:- Setting appropriate tone and corporate culture- Approving and overseeing strategic planning (3-5 year outlook recommended)- Establishing and approving policies- Creating code of ethics- Providing active oversight of management- Selecting qualified executive officers- Ensuring ongoing director training- Conducting board self-assessments- Overseeing compensation and performance management4. Important Considerations:- Board composition and diversity of skills/backgrounds- Documentation of strategic plan changes- Importance of independent but cooperative relationship with management- Training and self-assessment requirements- Three lines of defense in risk management:  * Frontline units  * Independent risk management  * Internal auditNotable Quotes:"By and large, directors are very dedicated and do a very good job of keeping our system safe and sound." - Todd MillerResources Mentioned:- FDIC Director's Resource Center- NCUA Required Policies List- Quantum Governance (board training resource)

Joe Goldberg, a former NCUA official specializing in fair lending, sheds light on essential fair lending practices for credit unions. He discusses the significance of laws like the Equal Credit Opportunity Act and the Fair Housing Act, emphasizing that credit decisions should be free of discrimination. Goldberg also tackles the challenges credit unions face during NCUA examinations and explains the nuances of disparate treatment versus disparate impact. His insights provide valuable guidance for ensuring compliance and promoting equity in lending.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/www.oldenlane.com1. Mike Macchiarola from Olden Lane discusses NCUA-assisted credit union mergers and why we may see more of them in the near future.2. Current industry challenges:   - 10% of credit unions are now CAMEL 3, 4 or 5   - ROA is at 69 basis points, lowest in a decade (excluding COVID dip)   - 764 credit unions have zero or negative ROA   - Rising cost of funds, asset quality concerns, fee compression3. Importance of pursuing mergers while credit unions still have "self-determination" rather than waiting for NCUA to dictate terms.4. Overview of the NCUA's Merger Partner Registry and how it's used when an assisted merger is needed.5. Process for NCUA-assisted mergers:   - NCUA identifies potential acquirers from registry   - Interested credit unions sign NDA and receive bidder's package   - Acquirers evaluate opportunity under time pressure   - NCUA seeks lowest-cost alternative but considers multiple factors6. Advice for credit unions considering assisted mergers:   - Hire experienced advisors to help navigate the process   - Be prepared to make decisions with imperfect information   - Understand NCUA's preference for full mergers over purchase & assumptions7. Importance of maintaining strong capital position to be an attractive merger partner.8. Discussion of how NCUA balances cost considerations with ensuring long-term stability when selecting merger partners.Key Quote: "Don't get yourself to the place where the NCUA is dictating terms because your option set is closing. You owe it to your membership, your staff, your management team, your legacy of your institution, its brand and its community not to get there." - Mike MacchiarolaCall to Action: Credit unions considering mergers or concerned about their long-term viability should visit www.oldenlane.com to learn how Olden Lane can assist with strategic planning and merger navigation.

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: Exam Appeals at the Regional Level## Guest: Todd Miller- Former NCUA employee with nearly 34 years of experience- Roles included examiner, problem case officer, regional capital market specialist, and director of special actions in the western region- Served on NCUA's supervisory review committee## Key Points:1. Recent changes in NCUA's exam report process:   - Reports now reviewed at higher levels before issuance   - Credit unions no longer see draft reports, only draft exam findings and DORs   - Camel codes not discussed during exams2. Avoiding appeals:   - Communicate openly with exam staff throughout the process   - Understand risk ratings and proposed DORs/exam findings during the exam   - Negotiate corrective actions during the exam when possible3. Appeal process steps:   - Start with the examiner, then supervisory examiner, then regional director   - Adhere to timeframes for formal appeals (within 30 days)   - Gather documentation to prove your point4. Considerations for appealing:   - Weigh the cost-benefit of appealing vs. implementing changes   - Don't fear retaliation; appeals can be successful at the regional director level   - Start with the supervisory examiner, even for complex issues involving specialists5. Handling personality conflicts:   - Can be addressed as part of the appeal process   - Supervisors may reassign examiners depending on the situation## Takeaways:- Communication is key to avoiding surprises and potential appeals- Don't be afraid to appeal if there's a material disagreement- Appeals at higher levels (beyond regional director) can be more costly## Contact Information:- Email: cuexamsolutions@marktreichel.com- Website: www.marktreichel.comHere's a draft of show notes for the podcast episode. These notes summarize the key points discussed, including information about the guest, changes in NCUA's exam process, steps for avoiding and handling appeals, and important considerations for credit unions. I've also included the contact information provided at the end of the episode.Let me know if you'd like me to modify or expand on any part of these show notes.