Division of Credit Unions Releases Compliance Examination Program

A new bulletin from the Washington State Department of Financial Institutions’ Division of Credit Unions (DCU) explains an enhanced compliance examination program that will affect Washington state-chartered credit unions with assets of more than $500 million.

For credit unions with assets of less than $500 million, compliance will continue to be part of the regular safety and soundness examinations.

According to DCU Bulletin B-13-15, the enhanced program will:

  • Focus solely on consumer and regulatory compliance
  • Be conducted at a different time than the annual safety and soundness exam
  • Will be completed with a compliance rating and report issued to the credit union

The DCU plans to complete the separate compliance examination for all Washington State-chartered credit unions with more than $500 million in assets over the next 20 months, and will continue the separate compliance examination after that on a 20-month cycle.

A pre-examination letter will be sent to each credit union approximately eight weeks before the exam. The examination scope will cover operational areas such as:

  • Deposits
  • Consumer lending
  • Mortgage lending
  • Mortgage servicing
  • Privacy and consumer information

The examiner-in-charge (EIC) for the compliance examination will contact a credit union representative to make arrangements for obtaining the pre-exam information. During the examination, the EIC may meet with the manager and staff, the board chair, and the supervisory committee. The EIC will arrange a date and time with management for the exit conference.

If possible, the board of directors and supervisory committee should attend the exit conference. Efforts will be made to make the date, time, and location of the meeting as convenient as possible for all attendees. A separate examination report will be issued approximately 30 days after the exit conference.

Examiners will follow up on significant concerns found during the consumer compliance examination during safety and soundness exams or a special limited-scope compliance exam.

The DCU has adopted the Federal Financial Institutions Examination Council’s (FFIEC) Uniform Consumer Compliance Rating System for its compliance exams.

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance.