The National Credit Union Administration will continue conducting credit union examinations offsite because of the coronavirus crisis but will resume issuing reports written as a result of the exams, NCUA Chairman Rodney Hood announced Thursday.
In March, the agency announced that it would stop sending examiners to credit unions as a result of the pandemic but would continue examinations offsite when credit unions were able to provide the needed documentation. At that time the agency said that it would not issue examination reports.
In a letter to credit unions Thursday, Hood said that NCUA staff still will not visit most credit unions for examinations until further notice, but would issue reports prepared as a result of offsite exams.
“Examiners will also be mindful of the impact information requests may have on a credit union experiencing operational and staffing challenges associated with the COVID-19 pandemic,” Hood wrote. “While we understand that not all credit unions are able to accommodate offsite work, we appreciate those that have facilitated offsite examinations and supported NCUA’s efforts to ensure a safe and sound credit union system,” he continued.
Hood said that since March 16, examiners have conducted work at more than 100 credit unions, with a median asset size of $56 million. While examiners said that they have been able to complete most of their work, completing an exam offsite is taking longer than an onsite exam would take.
Hood said that the more information a credit union can provide, the more likely it will be that agency staff will not have to return to the credit union until the next exam cycle. He said that any corrective actions issued to a credit union will consider the impact the pandemic has had on the institution’s operations.
“NCUA examiners will not criticize a credit union’s efforts to provide prudent relief for members when such efforts are conducted in a reasonable manner with proper controls and management oversight,” Hood said.