The NCUA Appeal Process: A Complete Guide

Credit Union Exam Solutions Presents With Flying Colors

www.marktreichel.com

https://www.linkedin.com/in/mark-treichel/

The NCUA Appeal Process: A Complete Guide

# NCUA Appeal Process with Mark Treichel

## Overview
This episode covers the formal appeal process at NCUA, detailing how credit unions can appeal examination findings and supervisory determinations.

## Key Points About Initial Response to Examination Findings

- Start with the examiner level - resolving issues at the lowest level is most time and cost-efficient
- Common reasons for appeals include:
- Factual errors not corrected
- CAMEL code downgrades
- Requirements that could negatively impact member service
- Requirements affecting capital building or earnings
- Requirements impacting liquidity control

## What Can Be Appealed

Material supervisory determinations that may significantly affect:
- Capital
- Earnings
- Operating flexibility
- Nature/level of supervisory oversight

Specifically includes:
- Composite examination ratings of 3, 4, or 5
- Loan loss reserve adequacy determinations
- Classification of significant loans/assets
- Federal consumer financial law compliance determinations
- Certain waiver requests/additional authority applications

## Appeal Process Timeline

1. Initial Appeal to Regional Director
- Must file within 30 days of examination
- Regional Director has 30 days to respond

2. Secondary Appeal Options (if Regional Director denies)
- 30 days to appeal to either:
- Office of Examination & Insurance, OR
- Supervisory Review Committee (recommended path)
- These bodies have 60 days to respond
- Can request oral hearing with Supervisory Review Committee

3. Final Appeal to NCUA Board
- 30 days to file after previous denial
- Board has 90 days to decide
- May request oral hearing (not guaranteed)

Total timeline can extend 8-12 months, especially if oral hearings are involved.

## Important Considerations

- Must follow each step sequentially - cannot skip levels
- Component CAMEL ratings cannot be directly appealed, but arguments about components support composite rating appeals
- Document resolutions are negotiable
- Appeals create an administrative record
- Partial victories possible at each level
- Success likelihood typically increases at higher levels
- "Tie goes to the runner" - burden of proof is on the credit union

## Resources

Related regulations:
- Part 746, Subpart A of NCUA regulations
- Preamble to final rule provides important context

## Contact Information
For more information or consultation about appeals:
- Connect with Mark Treichel on LinkedIn
- Contact Credit Union Exam Solutions

*Note: This episode expands on an earlier podcast about the regional appeal process featuring Todd Miller.*