Monday, January 14, 2013

NCUA Sets Low Bar for Fair Lending Exams

The National Credit Union Administration (NCUA) appears to set the bar pretty low when it comes to examining credit unions for fair lending compliance.

According to NCUA's 2013 Annual Performance Plan, the agency estimated that it completed 11 fair lending exams in 2012. Its target for 2013/2014 is 18 completed fair lending exams annually.

I hope the agency does not think 18 completed fair lending exams annually constitutes a stretch goal. This would mean that 99 percent of federal credit unions will not be examined for fair lending compliance over the next two years.

In fact, Department of Justice reports that between 2001 and 2011 NCUA never made a single fair lending referral. This absence of any referrals is probably due to NCUA's "See No Evil, Hear No Evil, Speak No Evil" approach to examining credit unions for consumer compliance.

This is not an isolated case of NCUA's abysmally track record with regard to examining credit unions for compliance with consumer regulations. For example, in July 2012, the Government Accountability Office found that NCUA examined 0.02 percent of federal credit unions for Servicemembers Civil Relief Act (SCRA) compliance.



Posted by at
Labels: , ,

1 comment:

  1. AnonymousJanuary 14, 2013 at 7:42 AM

    Mr. Leggett
    Thank you for the information you post, since we are unable to get transparency from NCUA or Cuna.
    Who is ncua's boss?
    Treasury or Congress?
    If its congress, I guess that answers the next question we have....why isn't NCUA dealt with by now?
    Congress approval rating is 1 in 7.
    NCUA approval rating is 1 in 6900.
    NCUA loves NCUA judging by the employees survey.

    ReplyDelete

Subscribe to: Post Comments (Atom)
 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.