According to the National Association of Federal Credit Unions (NAFCU), changes in the NCUA exams reflect reforms suggested by credit unions.
The Economic & CU Monitor found that more credit unions have “no concern” when it comes to NCUA exams compared to results from a survey last year, but that 43 percent of the survey’s respondents still have a moderate or significant level of concern.
Additionally, the Monitor said examiner focus has shifted to loan quality since the last survey with 31 percent of examiners focused more on indirect loans and 28 percent focusing on commercial real estate loans.
The monitor said the areas of greatest change in the consumer compliance arene were related to fair lending (31 percent) and auto lending (27 percent). Survey respondents reported either “no change” or “less focus on” consumer compliance issues like Regulation E and Regulation Z rules related to credit cards.
The monitor found that economic conditions stating that “the positive developments in the economy, including three scheduled rate cuts, persuaded the FOMC to make a significant shift in its outlook for 2024.”
NAFCU relies on survey responses to give member institutions and others a look at trends affecting the credit union industry, as well as help its advocacy efforts. The organization said its next survey will be a special edition covering interchange, with responses to the survey due Jan. 12.