Credit Union Exam Solutions Presents With Flying Colors

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: CAMEL Code 4 - What You Need to Know Episode SummaryMark Treichel discusses CAMEL Code 4 ratings for credit unions with guests Steve Farrar and Todd Miller, both former NCUA employees. They explore what a Code 4 rating means, its implications, and what credit unions should expect.## Key Points1. CAMEL Code 4 Definition:   - Indicates unsafe and unsound practices or conditions   - Risk management practices considered unacceptable for credit union size/complexity   - NCUA may have concerns about management's ability to correct problems2. Implications of a Code 4 Rating:   - Administrative action (usually unpublished Letter of Understanding and Agreement)   - Examinations every 120 days (6-12 weeks of examiner presence annually)   - Potential loss of Federal Reserve daylight overdrafts   - Possible assignment to NCUA's Division of Special Actions   - Federal Home Loan Bank may eventually be notified, potentially affecting borrowing terms3. Board and Management Responsibilities:   - Increased expectation for board to hold management accountable   - More frequent progress reporting to the board   - Need to authorize resources for problem resolution4. Financial Implications:   - May affect NCUSIF equity ratio, especially for larger credit unions   - Potential collateral requirements from lenders   - Possible issues with mortgage sales on secondary market5. Regulatory Oversight:   - NCUA approval required for changes in senior management and board members   - More detailed Document of Resolution (DOR) requirements6. Comparison to CAMEL Code 5:   - Code 5 indicates imminent failure risk   - Limited options, often leading to regulator-driven mergers or conservatorship## Guest Backgrounds- Steve Farrar: 30-year NCUA career, split between field work and central office roles- Todd Miller: 34-year NCUA career, including roles as examiner, capital market specialist, and director of special actions## Additional Notes- Discussion of historical tools like PUED (Prior Undivided Earnings Deficit) no longer available to NCUA- Emphasis on the challenging but potentially rewarding nature of working with troubled credit unions

Credit risk management takes center stage as experts discuss NCUA's priorities for 2024. Economic shifts, rising inflation, and surging delinquencies are testing credit unions' resilience. The podcast examines the impacts of consumer financial struggles, especially among lower-income groups. Key insights reveal the challenges in unsecured lending and the significance of the CECL accounting standard. With a focus on concentration risk, it's clear that adapting risk management strategies is crucial for navigating the evolving financial landscape.

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.Here are some suggested show notes for this podcast episode:Title: So You're a CAMEL Code 3 - Now What?Summary:Mark Treichel, Steve Farrar, and Todd Miller discuss what it means when a credit union receives a CAMEL 3 rating from NCUA and what to expect in terms of increased supervision and requirements. They cover recent trends in CAMEL 3 ratings, how NCUA's oversight changes, and advice for credit unions on responding effectively.Key Points:- Recent trend of more large credit unions moving to CAMEL 3 ratings- NCUA increases supervision for CAMEL 3 credit unions, including:  - Follow-up exams every 6 months   - Documents of Resolution with specific deadlines  - Regional Director letters emphasizing concerns  - Monthly reporting requirements in many cases- Credit unions should expect it to take 14-20+ months before potentially being upgraded back to CAMEL 2- Importance of addressing core issues identified in Documents of Resolution- Boards should implement tracking/reporting on progress resolving issues- Management should provide regular updates to board on addressing concernsGuests:- Steve Farrar - Former NCUA examiner and central office staff member- Todd Miller - Former NCUA examiner and Director of Special ActionsHost: Mark Treichel, Credit Union Exam Solutions

Delve into the evolution of the National Supervision Policy Manual and its impact on credit union examination practices. Discover the shift from the outdated Examiner's Guide and the ongoing frustrations surrounding regulatory transparency. Hear insights on vital chapters, including management and regulatory waivers, and the challenges of accessing crucial information. Former examiners share their personal experiences while unraveling the complexities of navigating the exam processes, emphasizing the importance of preparation and understanding concentration risk thresholds.

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.: Project Management of Your NCUA Documents of Resolution (DOR)Guest Speakers: - Steve Farrar (Former NCUA examiner and central office staff)- Todd Miller (Former NCUA examiner and director of special actions)Key Topics Discussed:1. Current trends in NCUA Documents of Resolution (DORs)   - Longer DORs with numerous action items   - Possible reasons: Merit system, examiner inexperience, post-COVID catch-up2. Communication challenges between credit unions and NCUA examiners   - Importance of clear understanding and negotiation of DOR requirements   - Impact of quality assurance reviews on agreed-upon terms3. Project management strategies for addressing DORs   - Establishing clear priorities and timelines   - Assigning accountability and resources   - Balancing reporting requirements with actual problem-solving4. Cost implications of DOR requirements   - Examiners may not fully understand financial impact on credit unions   - Potential conflicts between profitability goals and compliance costs5. Best practices for internal communication and reporting   - Transparency across management team and board   - Regular updates to board and supervisory committee   - Demonstrating commitment to corrective actions6. Importance of finding the right balance in reporting   - Avoiding excessive time spent on reporting at the expense of problem-solving   - Using summary reports effectivelyKey Takeaways:- Effective communication with NCUA examiners is crucial for managing DORs- Proper project management techniques can help credit unions address DOR items efficiently- Credit unions should be aware of and communicate the cost implications of DOR requirements- Regular, transparent reporting to internal stakeholders demonstrates commitment to improvement- Balance detailed reporting with actual progress on corrective actions

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.Guests: - Keith Stone, CEO of The Finest Federal Credit Union and New Jersey PBA Federal Credit Union- Rick Mumm, former NCUA examiner and credit union consultantKey Points:- Keith Stone discusses his background in credit unions, including chartering The Finest FCU for law enforcement in New York in 2014-2015- Rick Mumm shares his 35+ year career at NCUA, including work in chartering and field of membership  - They discuss the process of chartering the new New Jersey PBA Federal Credit Union, set to open next month- Key challenges in chartering a new credit union:  - Proving the concept/need for the credit union  - Securing initial capital funding   - Navigating NCUA's chartering process and requirements- Benefits of having experienced help to "speak NCUA's language" and present information properly- Importance of having a committed sponsor group and sufficient capital to start- How The Finest FCU is leveraging shared services to support the new NJ PBA FCU- Keith's work with new NYPD recruits, offering low-rate loans for equipment - Their mission to provide better financial services for law enforcementContact Info:Keith Stone: 646-661-1331Rick Mumm: rick@rcuservices.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: Upcoming Episodes and Industry Updates## Episode SummaryMark Treichel provides updates on upcoming podcast episodes and discusses recent trends in the credit union industry based on Callahan's quarterly state of the industry report.## Key Points### Upcoming Episodes- Late August: Field of memberships and new charters, featuring Keith Stone of the Finest Federal Credit Union- September:   - "You're a Code Three. Now What?"  - "You're a Code Four. Now What?"  - NCUA meeting with credit union boards without staff present### Podcast Statistics- 192 episodes of "With Flying Colors"- 46 episodes of "Credit Union Regulatory Exams" (AI-driven audiobook style)- New schedule:   - Mondays: New "With Flying Colors" episodes  - Tuesdays: "Credit Union Regulatory Exams" episodes  - Thursdays: "Evergreen" topics from past episodes### Industry Updates (from Callahan's Report)- Profitability marginally better- Charge-offs flat- Net interest margin improved slightly- More credit unions engaging in hedging- Total credit unions: ~4,600- Total assets: $2.3 billion- Loan growth slowed to less than 4% (down from 12% in previous 12 months)- Share growth improved to 2.7% (up from 1.2% in previous 12 months)- Median credit union (assets $59 million) saw 1.22% decline in shares- Certificate growth at 31%- Unrealized losses down from $41 billion to $30 billion- Borrowings decreased from 6% to 5.3% year-over-year- Cash reserves built up to about 2%- Real estate loans down slightly- Consumer loans down 15%- Credit card loans up 7%- HELOCs up 20%- Commercial loans up 10%## Call to Action- Subscribe to the podcast- Rate the podcast on Apple Podcasts/iTunes- Check out services at 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.10 Reasons Why NCUA Should NOT regulate Succession Planning.https://www.marktreichel.com/https://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.Key Points:1. Recent NCUA exam focus areas:   - Interest rate risk and liquidity risk (2022-2023)   - Board governance    - Commercial lending programs   - Loan concentrations   - Consumer compliance, especially for third-party relationships2. Board governance issues:   - Increased expectations for board oversight and accountability   - Focus on risk appetite and concentration risk limits   - Need for analytical support and modeling for risk limits3. Communication challenges:   - Frustrations with examiner communication and expectations   - Importance of documenting discussions and agreements with examiners4. Enterprise Risk Management:   - Growing expectations for ERM programs, even for credit unions under $10 billion   - FDIC guidance on corporate governance as a useful resource5. Stress testing requirements:   - Increasing expectations for analytical support of policy limits   - Can be costly and resource-intensive for credit unions6. Information security:   - Ongoing area of focus, likely to increase given recent high-profile incidents   - May lead to more formal exam findings (DORs) on cybersecurity issues7. Third-party vendor management:   - Renewed emphasis on oversight of third-party relationships   - Recent incidents may fuel push for NCUA third-party vendor authority8. Looking ahead:   - Potential for increased NCUA staffing and resources for consumer compliance   - Importance of credit union communication plans for crisis situationsGuests: Todd Miller and Steve Farrar, former NCUA executives and current credit union consultantsHost: Mark TreichelThe podcast provides insights into current NCUA examination trends and offers advice for credit unions on navigating regulatory expectations.

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.In this episode of With Flying Colors, host Mark Treichel sits down with John McKechnie to discuss crisis communication plans and lessons learned from both good and bad crisis communications in the credit union industry.Key points covered:1. The importance of having a crisis communication plan in place before a crisis hits2. Lessons learned from the 2008-2010 financial crisis3. The critical need to inform members about the safety and soundness of their funds quickly during a crisis4. The value of tabletop exercises and planning for various crisis scenarios5. Identifying key stakeholders and prioritizing communication with them6. The role of social media and digital communication channels during a crisis7. Creating a dedicated landing page on your website for crisis information8. Conducting post-crisis analysis to improve future responses9. Balancing speed and accuracy in crisis communications10. Handling media inquiries and the importance of transparencyJohn McKechnie shares insights from his extensive background in the credit union industry, including his time at CUNA and NCUA. He emphasizes the importance of being prepared, transparent, and member-focused during times of crisis.Contact information for John McKechnie:Email: john@mckechniellc.comPhone: 202-997-5816Listeners are encouraged to reach out with any questions or suggestions related to crisis communication planning.