With Flying Colors

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Presidential Power and Independent Agency Autonomy: The 2025 NCUA Board Removal CaseI. Legal and Constitutional FrameworkA Constitutional Showdown BeginsFrom "At Pleasure" to Independence: The 1978 RestructuringThe Humphrey's Executor Precedent: Protecting Independent AgenciesUnitary Executive vs. Congressional DesignThe Narrowing Path of Agency IndependenceSwan v. Clinton: The Precedent That Wasn't Quite50 Years of Respect for Fixed TermsII. The NCUA's Specific Structure and FunctionsThe Removed Regulators: Harper and OtsukaThe NCUA: A Core Financial RegulatorExecutive Function or Independent Regulation?The NCUSIF: Owned by Credit Unions, Not GovernmentThe Central Liquidity Facility: A Link to TreasuryOperating Without a QuorumFinancial Stability at StakeIII. Litigation Strategy and Broader ImplicationsSix Legal Theories for VictoryDavid vs. Goliath: The Legal TeamThe Long Road to the Supreme CourtBeyond NCUA: Implications for the Administrative State

Conservatorship: When NCUA Removes the Board & What You Need to KnowEpisode Summary:In this special episode, hosts Mark Treichel, Steve Farrar, and Todd Miller dive into the high-stakes world of NCUA conservatorships—when the agency steps in to remove a credit union's board and take control. Drawing from their extensive experience handling some of the largest conservatorships in NCUA history, they provide insider insights on:What conservatorship means and when it happensThe role of the NCUA as both regulator and conservatorWhy NCUA often opts for conservatorship over cease-and-desist actionsThe challenges of managing a conservatorship from both a regulator's and a credit union's perspectiveSuccess stories and lessons learned from past conservatorshipsThe hosts reflect on the intensity, challenges, and rewards of the conservatorship process, including the balance between protecting the NCUSIF (National Credit Union Share Insurance Fund) and serving credit union members. Whether you're a credit union executive, regulator, or industry observer, this episode delivers valuable insights into one of the NCUA's most powerful enforcement tools.Key Quotes:

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/The NCUA's boardroom has been rocked. Two board members fired. DOGE staff roaming the halls. Rumors of a regulatory consolidation swirl. In this must-hear episode, Mark Treichel is joined by former NCUA Board Member Geoff Bacino and former NCUA Congressional Affairs Director John McKechnie to unpack one of the most chaotic weeks in recent credit union regulatory history.From unprecedented dismissals to the looming question of NCUA's independence, we cover:

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/White House press secretary Karoline Leavitt defended the firings, saying, “President Trump is the chief executive of the executive branch and reserves the right to fire anyone he wants.”Warren:“President Trump just fired two Board Members at the National Credit Union Administration in his continued attack on American consumers. This is the latest attempt by Trump to skirt the rule of law, undermine independent agencies, and illegally purge the government of those who work for the American people.”

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Episode Overview:In this episode of With Flying Colors, Mark Treichel tackles two hot topics ahead of the upcoming NCUA Board meeting:The Staff Buyout Program: With 145 FTEs already accepting voluntary separation packages—roughly 12% of NCUA's workforce—Mark explores the deeper implications. Could the agency be targeting a symbolic sub-1,000 FTE threshold? Poll results and inside intel help paint the picture.The Wildfire Relief Briefing: Mark offers context for why the interagency appraisal relief rule—issued in January—is now being briefed to the NCUA Board in April.Plus, a timely listener tip leads to a discussion of Treasury Secretary Scott Bessant's recent remarks about reshaping regulatory culture—calling for more transparency, better tailored supervision, and a possible redefinition of "safety and soundness."

Episode Summary: In this episode of With Flying Colors, host Mark Treichel is joined by former NCUA capital markets expert Todd Miller to discuss the latest updates to NCUA's Interest Rate Risk (IRR) Supervisory Framework. Following NCUA's recent stakeholder webinar, we break down key takeaways, including changes to risk categorization, the elimination of the extreme risk rating, and how these updates impact credit unions navigating today's economic landscape.What You'll Learn in This Episode: ✅ The history and evolution of NCUA's NEV framework ✅ Why NCUA eliminated the “extreme risk” category and what it means for credit unions ✅ The role of examiner judgment in assessing interest rate risk under the new guidance ✅ How credit unions can mitigate risk and avoid a Document of Resolution (DOR) ✅ The growing importance of liquidity management and how credit unions should prepare ✅ Why examiner scrutiny of IRR is increasing, despite the removal of automatic DORsKey Takeaways from the NCUA Webinar:

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/A quick-hit episode this week! Mark shares thoughts on Duke's March Madness collapse, the rise of Rodney Hood at OCC, Jim Nussle's pending retirement, and NCUA's buyout offers. Plus, a few takes on market volatility, sub debt approvals, and the ever-shifting dynamics at the NCUA Board.Topics Covered:Duke's tourney loss and dynasty hateRodney Hood's possible FDIC moveJim Nussle's retirement newsNCUA staff buyouts and exam slowdownsThe case for sub debtMarket drops and flight to quality

Episode Title:NCUA: Can You Put That in an Examiner Finding, Not a DOR?Episode Summary:In this episode of With Flying Colors, host Mark Treichel is joined by Steve Farrar and Todd Miller to unpack the complexities of NCUA examinations, examiner findings, and documents of resolution (DOORS). They dive into what makes an issue rise to a DOOR, how credit unions can negotiate findings, and why corporate governance is becoming a focal point in exams.With their decades of experience inside NCUA, Mark, Steve, and Todd share insights on how credit unions can better navigate the regulatory process, avoid unnecessary compliance burdens, and strengthen their governance structures. If you've ever wondered why something lands in a DOOR rather than an examiner finding, this episode is for you!Key Topics Covered:✔️ What qualifies as an examiner finding vs. a DOOR? ✔️ How credit unions can respond to and negotiate with NCUA ✔️ The rising focus on corporate governance in examinations ✔️ How unresolved examiner findings escalate over time ✔️ The role of supplementary facts in the examination process ✔️ Understanding regional director letters and enforcement trendsGuest Information:

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/In this episode of With Flying Colors, Mark Treichel is joined by Jason Stverak, Chief Advocacy Officer of the Defense Credit Union Council (DCUC), for a wide-ranging conversation on the unique role defense credit unions play in serving military members—and the policy battles threatening their ability to do so.Jason shares how DCUC advocates for military-affiliated credit unions across a rapidly evolving regulatory and political landscape. From the impact of the Credit Card Competition Act on interchange fees to the overdraft protection debate and the ongoing defense of the credit union tax exemption, this episode dives deep into the issues shaping the future of service-based financial institutions.You'll also hear powerful real-world stories—including how Navy Federal helped a young Marine avoid a predatory car loan, and how Enbright Credit Union supports members battling cancer—that illustrate the mission-first, member-first mindset of credit unions in action.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/ Episode Summary: In this episode of With Flying Colors, host Mark Treichel is joined by Steve Farrar and Todd Miller from Credit Union Exam Solutions to discuss the serious implications of a CAMEL Code 4 rating. A downgrade to CAMEL 4 signals significant risk and increased regulatory scrutiny. What does this mean for your credit union? What immediate actions should management and the board take? How does this impact borrowing, liquidity, and operations? Get expert insights into navigating the challenges of CAMEL 4 and what steps to take to get back on track. What You'll Learn in This Episode: ✅ What is a CAMEL Code 4? Understanding why it's a major red flag ✅ How NCUA views CAMEL 4 credit unions and why they ramp up oversight ✅ The consequences of a downgrade – more frequent exams, lost privileges, and reputational risk ✅ NCUA's administrative actions – what happens when you receive a Letter of Understanding & Agreement (LUA) ✅ How a CAMEL 4 affects your liquidity – Federal Reserve & Federal Home Loan Bank implications ✅ The impact on borrowing & collateral requirements ✅ The role of the board in a CAMEL 4 credit union – what's expected of leadership ✅ Can a CAMEL 4 credit union recover? Strategies for improvement Key Takeaways: 

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/In this episode of With Flying Colors, host Mark Treichel is joined by Steve Farrar and Todd Miller to analyze the latest trends shaping the credit union industry in 2024. They dive into the recently released NCUA data, discussing multi-year trends, economic pressures, and how credit unions are navigating challenges such as rising delinquencies, declining net income, and shifting liquidity conditions.Key Topics Covered:✅ Multi-Year Credit Union Trends – How decisions made during COVID-19 continue to impact the industry today ✅ Rising Credit Risk & Loan Performance – What's driving the surge in credit card and auto loan delinquencies? ✅ NCUA's Supervisory Priorities – Where examiners are focusing their attention in 2024 ✅ Liquidity & Interest Rate Risk – How credit unions are adjusting to changing market conditions ✅ Earnings & Profitability Pressures – Understanding the impact of fee income declines, provision for loan losses, and economic uncertainty ✅ Regulatory Challenges & Mergers – The latest data on credit union consolidations and how they compare to community banksRecent Exam Trends:

 So You're a CAMEL Code 3 – Now What? 

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/NCUA Predictions: What Will the Do in 2025?Treichel: [00:00:00] Hey everyone, this is Mark Treichel with another episode of With Flying Colors. Today I am flying solo and I am calling this podcast something like what I expect from NCUA in 2025. In preparing for today's show, I took some notes going back and looking at NCUA's Agenda from their board action taken in 2025 and am gleaning based on the Trump administration and the Helpman leadership.What may or what may not happen in 2025 compared to 2024. When you go back and look at 2025. They had canceled two board meetings. So that was one takeaway. They canceled the March, 2024 board meeting, which was the first time in a long time that that had happened. And they canceled the June, 2024 meeting.So this was under then [00:01:00] chairman Todd Harper, who is now a board member at large, although he came close to being named vice chair, and you can check out some of my past podcasts for discussions on why that may have blown up anyway. It things continue to blow up at the board level, but I'll get to that here shortly.All right. They canceled 2 board meetings and they held for N. C. U. S. I. F. share insurance fund briefings. I report on those quite a bit here and on linked in because that's 1 of the few windows to generic camel code ratings. You can see when camel code ratings go up and they did 4 of those. in 2024.I'm expecting they'll do four of those in 2025. They did one cyber security update briefing and they did a new charter update and briefing and tip to what I might say in the future. I think there will be more briefings because I don't think the board will be acting on much because I don't think the board [00:02:00] is currently getting along because of the kerfuffle on NSF and overdraft fees.All right. So other things they did they did a proposed succession planning rule and a final succession planning rule. They did an incentive based compensation proposal, which I think will go nowhere in 2025. That was put out there because Biden's administration required it from all. Banking agencies and under the Trump administration there will be less or zero regulation.And I don't see them wanting to put proposals in on incentives. If you'd know what I mean. In July, there was a loan rate ceiling approval to. re approve utilization of the 18 percent rate. That's what they do every time. The trade associations come out saying you should allow that to go up or you should make it based on variability.If NCOA was ever going to raise it, it would have been last year and or the year before. They [00:03:00] didn't seize that opportunity because they thought it would have been egregiously harmful to credit unions and credit union members. I disagree with that, but they will vote on that again because they have to vote on it and they will likely just do what they've done umpteen years in a row, which is reaffirmed the 18%.I expect that to happen in July again. All right. What else is going to be happening? Potentially, they did have a board appeal in August. By the way, they typically don't have open board meetings in August. That was a closed a closed item where a credit union appealed something without revealing what I know relative to that.That was a field of membership appeal. There was a fair hiring and banking proposal, which doesn't need to repeat in 2025. They simplified the insurance rules. And then when you get close to the end of the year, what happens at the end of the year and CUA approves their budget. But before they approve their budget, they do a budget briefing.A little [00:04:00] bit of history on the budget briefings. The budget briefing started when I was the deputy executive director and they were started by Dennis Dollar. And I remember saying to that executive director, Len Skiles, if you do this, Make sure you want to do it and it was for transparency. But once you start something, it's very difficult to stop it.And I'll get to that and why I'm making that point. I'll get to it now, but I'll refer to it again. So NCOA did stop it. I believe it was under the Matt's administration and the trade associations got upset because that was their opportunity. One of their opportunities to show value saying your budget's too high.Here's why we think it's too high. And through assistance from Senator Mark Warner in Virginia, they were able to get the Federal Credit Union Act proposed, requiring NCUA to do a budget briefing. They are required to do a budget briefing. I believe they will do a budget briefing. I'm not so sure they will do a budget.They're not [00:05:00] required to do a budget, and they are required to do a budget briefing. They're not required to do a budget, and that's because there is a two year budget. So I'll get to that and why I think that they may not do a budget when we walk through what I think will happen in totality in 2025. The NCOA approved their annual performance plan, which is linked to their strategic plan, already in January.That was one of the last things they did prior to Hauptmann taking over. So they don't need to do that annual plan, but they do need to do another strategic plan, and that would be due by the end of 2025 for the years 2026 through 2030. Will they do that? We will see. All right. So when you look at what is going to happen and what I predict will happen in 2024, that's a little bit about what happened.What I'm predicting in 2024 is that the theme of canceling board meetings will continue. They, as I mentioned, they canceled March and June. I'm [00:06:00] expecting that they may cancel April or May. Or June or July, I don't believe they're going to have enough briefings to keep an agenda full. I don't believe they're going to agree on enough things because of the arguments they're having about about NSF fees and overdraft fees being reported by over a billion dollar credit unions.There's two approaches here. Kyle Hauptman canceled and changed the. Way that billion dollar plus credit unions were going were reporting for three quarters on NSFs and overdrafts saying that it's overkill and it's onerous on the credit unions, et cetera, et cetera, and that they would be looking at that during part of the examinations and then after he announced that at GAC and then.Board member Harper and board member Otsuka came out with their own press releases, and I understand they did a full court press on [00:07:00] Capitol Hill on the topic and came out saying that what's wrong with transparency? There should be transparency here. Why are you stopping something that was started and that credit unions had been providing and that's bad for members?So that's the nexus I wanted to say where I mentioned with Dennis Dollar that when he started the budget briefings, I thought they would never be stopped. And it's hard to stop something when you do. What happened? Debbie Matt stopped the budget briefings, and then lo and behold, the Federal Credit Union Act was changed and INSU 8 was required.to do that. So at some point, whether it's when the next time there's a D in the White House or there's a D in running the Dems have control of Congress. And the White House, you're going to see more on the fee situation. You're going to see NCOA go back to collecting this data. Will it be in 4 years?Will it be in 8 years? Will it be sometime sooner than that? [00:08:00] My guess is not before the four year period. I can't see how it went flip floppi...

Episode Summary:In this episode of With Flying Colors, Mark Treichel, along with industry experts Steve Farrar and Todd Miller, discuss a growing trend—NCUA requesting private meetings with credit union boards. What does it mean when regulators ask to meet without management present? Should boards be concerned? And how should they prepare?With decades of NCUA experience, Steve and Todd share insights into:✅ Common reasons why NCUA requests board-only meetings✅ When a meeting with the board chair is routine vs. when it's a red flag✅ The importance of listening, but not committing to actions during these meetings✅ Why legal counsel might be necessary in certain situations✅ Whether you should record the meeting—and if NCUA will allow itMark, Steve, and Todd also share real-world examples of how these meetings have played out, including situations where state regulators took a more aggressive approach.Whether you're a board member, CEO, or concerned about your next NCUA exam, this episode provides essential insights to ensure you're prepared if NCUA makes the call.Resources Mentioned:

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Did NCUA just vote on its reorganization plan?  Time will tell.https://www.opm.gov/policy-data-oversight/latest-memos/guidance-on-agency-rif-and-reorganization-plans-requested-by-implementing-the-president-s-department-of-government-efficiency-workforce-optimization-initiative.pdf

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Recorded just prior to GAC... check out this great interview with Katie Averill of Iowa and NASCUS...

"Liquidity Management: Reading Between the Lines of NCUA's Latest Guidance"In this insightful episode, Mark Treichel and former NCUA Capital Markets Specialist Todd Miller analyze NCUA's April 2023 liquidity webinar and provide their expert take on the agency's current perspective on liquidity management.Episode Highlights:Todd Miller shares his 34-year experience at NCUA, including his roles as a regional capital market specialist and director of special actionsKey liquidity guidance documents discussed: 2010 Interagency Policy Statement on Funding and Liquidity Risk Management, 2013 CU 10 guidance on Regulation 741.12, and the 2023 addendum on contingency funding plansAnalysis of credit union deposit composition changes: from 55% in money markets, CDs, and wholesale funding in 2009 to 52% currentlyDiscussion of "reversion to the mean" in deposit mix and how credit unions have adapted to the rate environmentExamination inconsistencies: varying liquidity ratios and expectations from examiner to examinerThe importance of forward-looking liquidity management versus "rear-view mirror" approachesDisconnect between NCUA's public statements (e.g., "supervisory test is not how credit unions should manage interest rate risk") and examiner actionsHow improved analytics allow credit unions to operate with lower cash holdings while still managing risk effectivelyThe appropriate use of wholesale funding, borrowings, and non-member deposits in liquidity managementWhy well-capitalized credit unions with good asset quality will generally maintain access to liquidityResources Mentioned:2010 Interagency Policy Statement on Funding and Liquidity Risk Management2013 CU 10 guidance on NCUA Regulation 741.122023 addendum to the 2010 interagency statement on funding and liquidity riskIf you're concerned about your credit union's next NCUA exam, visit marktreichel.com to learn how Credit Union Exam Solutions can help you navigate the examination process successfully.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/https://ncua.gov/newsroom/press-release/2025/hauptman-announces-changes-ncuas-overdraftnsf-fee-collectionA great Monday at GAC .... listen for details.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/NCUA Board focuses on staff morale and safety of deposits.  Also what happened to the item making Todd Harper Vice Chairman??Listen and learn.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Episode Title: "Credit Unions at a Crossroads: Regulator Consolidation and the Tax Threat"With Flying Colors Podcast | Episode [Number] | Released February [XX], 2025Host: Mark TreichelGuest: John McKechnie, John Ney LLC, Credit Union Policy Expert  Overview:In this timely episode, recorded just ahead of the 2025 Governmental Affairs Conference (GAC), Mark Treichel sits down with John McKechnie, a seasoned credit union advocate and former NCUA insider, to unpack the seismic shifts brewing in Washington, D.C. With the Trump administration signaling a potential overhaul of financial regulators and whispers of taxing credit unions, the stakes couldn't be higher. Will NCUA get swept into a bank-dominated regulatory merger? Could the credit union tax exemption be on the chopping block? John and Mark dive into the uncertainty, the risks, and what it all means for the credit union movement.Key Discussion Points:  Regulatory Consolidation Buzz: The Wall Street Journal and Bloomberg report on merging FDIC and OCC into Treasury—what does this mean for NCUA and credit unions? John shares insights from Capitol Hill, including a revealing chat with Senator Tim Scott's staff.  The Share Insurance Fund Risk: How a consolidated regulator could swallow the credit union-backed fund into a bank-centric FDIC system.  Taxation Tensions: Banks push to tax “mega” credit unions—are we facing a divide-and-conquer strategy? John breaks down the political and economic arguments credit unions must wield.  Exam Burden Reality: NCUA's lighter touch vs. bank regulators—could credit unions face 35% more scrutiny under a merged system?  GAC Game Plan: Why this year's hill visits might be the most critical yet, and how credit union advocates can make their voices heard.  CFPB's Future: A leaner, less aggressive CFPB under Trump—good news or a distraction from bigger threats?Notable Quotes:  “The deck is being reshuffled right now, and I think credit unions should be concerned.” – John McKechnie  “If you eliminate the credit union tax exemption, you're raising taxes on 220,000 of your constituents.” – John McKechnie  “This GAC could be as important as any visit to D.C. the movement has ever had.” – Mark TreichelWhy Listen?With uncertainty as the word of the day, this episode is your insider's guide to the regulatory and legislative battles that could redefine credit unions. Whether you're flying into GAC or tracking policy from afar, Mark and John deliver the wisdom you need to understand the stakes—and what's next.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Have an LUA, or are you worried about getting one?  Don't miss this episode.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/The Perfect Storm: Credit Risk and Modern Collections with David ReedIn this episode, Mark Treichel sits down with David Reed, of Reed & Jolly law firm, to discuss the pressing issue of credit risk and loan quality in credit unions. As a former in-house counsel and collections manager turned credit union attorney, Reed brings unique insights into modern collection challenges and solutions.Key Topics:Analysis of NCUA's 2024 Supervisory Priorities letter and its unprecedented focus on credit riskRecord-high delinquency rates in credit cards and used car loansThe need to modernize collection practices with new technology and communication methodsImportance of board reporting and corporate governance in managing credit riskBalancing member service with sound financial practices in today's economic environmentGuest: David Reed Contact: david@reedandjolly.com | 703-675-9578

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Show Notes: With Flying Colors - Interview with Mike Macchiarola of Olden LaneGuest: Mike Macchiarola, Olden Lane (broker-dealer and investment advisor serving credit unions)Key Topics Discussed:- Interest Rate Environment: Impact of "higher for longer" rates on credit unions, with industry cost of funds rising to 218 basis points- Regulatory Changes: Shift in regulatory focus under new NCUA leadership and potential Trump administration impacts- Consolidation Trends: Record year for credit union-bank transactions (22 in 2023) and increasing branch deal activity- Technology & AI: Growing importance of digital platforms while maintaining personal touch ("clicks and mortars")- Profitability Challenges: Industry ROA at 64 basis points with significant variance across institutions- Leadership Demographics: Addressing aging C-suite and board populations while attracting younger talent- Consumer Financial Health: Rising credit card delinquencies (11%) and increasing household debt levels- Fee Income: Evolving regulatory landscape around NSF and overdraft feesContact Information:- Website: www.oldenlane.com- LinkedIn: Mike Macchiarola- Email: Available through contact form on Olden Lane websiteNotable Quote: "If it don't make sense, it don't make dollars." - Mike Macchiarola on credit union profitability

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Press ReleasesSecretary Bessent Announces Intention to Appoint First Deputy Comptroller of the Office of the Comptroller of the CurrencyFebruary 7, 2025WASHINGTON – Secretary of the Treasury Scott Bessent today announced his intention to appoint Rodney E. Hood as a Deputy Comptroller and to designate him the First Deputy Comptroller of the Office of the Comptroller of the Currency (OCC). In this role, Mr. Hood will also serve as Acting Comptroller of the Currency.“The strong leadership and career experience of Rodney Hood will strengthen the OCC's efforts to ensure the safety and soundness of the banking system while also enhancing economic growth," said Secretary Bessent.“I remain steadfastly committed to serving the American people and the banking system by creating a regulatory structure that fulfills our obligations, fosters innovation, and promotes financial inclusion, including those Americans who have been debanked and underserved,” said Mr. Hood.The OCC is a bureau within the Department of the Treasury, and the Comptroller of the Currency is appointed by the President with the advice and consent of the Senate. By statute (12 U.S.C. § 4), the Treasury Secretary is responsible for appointing up to four Deputy Comptrollers of the Currency and designating one as the First Deputy Comptroller. During a vacancy in the position of Comptroller, the First Deputy Comptroller possesses the powers and performs the duties of the office of Comptroller.Mr. Hood was previously confirmed by the U.S. Senate in 2005 and again in 2019 to serve on the National Credit Union Administration Board. In 2019, President Donald J. Trump designated him as Chairman of the NCUA Board.  Before entering public service, Mr. Hood held senior roles in retail finance, commercial banking, affordable housing, and community development at JPMorgan Chase, GE Capital, Bank of America, Wells Fargo, and North Carolina Mutual Life Insurance Company.A North Carolina native, Mr. Hood holds a bachelor's degree from the University of North Carolina at Chapel Hill.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Key Topics to Include:Economic data and analysisFinancial statement reviewKey performance/risk indicatorsLiquidity reportingInterest rate risk analysisInvestment portfolio oversightScenario testing and stress analysisModel validation and risk assessmentCredit risk integrationDocumentation and minutes

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Let me draft show notes that capture the key points from this podcast episode while maintaining a natural flow without bullets or numbering.Episode Title: What is the Meaning of "Agreed Upon Corrective Action"?Summary:In this special Archive episode of With Flying Colors, Mark explores the meaning and implications of "agreed upon corrective action" in credit union examinations. Drawing from his experience at NCUA, Mark explains how this term appears on examination reports and why its proper implementation is crucial for credit unions.Key Points Covered:Mark begins by breaking down the literal meaning of "agreed upon" using dictionary definitions, emphasizing that it means coming to a mutual arrangement or understanding. He shares a recent case where a small credit union reached out about their examination frustrations, highlighting how the agreed-upon process can sometimes break down.The Process:The examination report process typically includes a draft phase where credit unions can review and discuss findings with examiners. However, due to year-end pressures and internal goals, sometimes reports are finalized without proper consultation. Mark explains that the examination report's cover page explicitly states it should document "agreed upon corrective actions," making it important for credit unions to ensure they actually have input in this process.Recommendations for Credit Unions:Mark advises credit unions to push back when they don't receive proper opportunity for input. He suggests starting with the examiner, then moving up to the supervisory examiner if necessary. While NCUA has final authority on safety and soundness issues, credit unions should still receive the opportunity to influence report language to better serve their needs and their members' interests.Important Context:The podcast notes that NCUA implemented a higher level of review for examination reports, requiring supervisory review. While this creates more consistency, it can sometimes make immediate dialogue more challenging, especially when reports are delivered as final without prior discussion.Closing Thoughts:Mark emphasizes that credit unions must decide when to "go along to get along" versus when to advocate for changes. The goal should be finding language that satisfies both NCUA's safety and soundness requirements and the credit union's operational needs.Contact Information:Listeners can learn more about Mark's services at markteichel.com. The podcast releases new episodes once or twice weekly, providing expert insights on achieving success with NCUA.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Kyle S. Hauptman Designated as NCUA Board ChairmanALEXANDRIA, Va. (Jan. 22, 2025) – President Donald J. Trump has  National Credit Union Administration Vice Chairman Kyle S. Hauptman as the thirteenth Chairman of the NCUA Board.“I am deeply honored that President Trump has asked me to serve as Chairman of NCUA,” Chairman Hauptman said. “I look forward to leading the agency's dedicated professionals and working with my Board colleagues to create a regulatory structure that promotes growth, opportunity, and innovation within the credit union system.“My priorities as Chairman include:Re-examining the current NCUA budgeting process.Convening groups of NCUA employees to identify achievable internal efficiencies to reduce unnecessary frictions in the agency's operations.Promoting the appropriate use of artificial intelligence (AI) as a tool for NCUA employees. One goal is enhancing productivity, but it's also true that regulators who use technologies are more apt to understand why the regulated use them.Focusing on true financial inclusion, which means removing barriers to de novo credit unions and removing the ‘pain points' that have led to fewer and fewer small credit unions. NCUA should be mindful that the only people who think compliance is easy are those that don't have to do it.Codifying our procedures to protect Americans from regulation-by-enforcement. For example, no enforcement action should ever set - even clarify - policy. In America and other free societies, the sequence is: set speed limits, then give speeding tickets (no one has any obligation to be aware of someone else's ticket).Making clear that credit unions and their members are best positioned to assess their communities' climate risks.Re-assessing NCUA policies that may, even inadvertently, dissuade credit unions from serving low-income areas. This includes language around overdraft policies, particularly for credit unions located in states with especially punitive government late fees/penalties.Right-sizing credit unions' obligations where possible under the Bank Secrecy Act, including NCUA's regulations surrounding Suspicious Activity Reports.”

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Episode Summary:In this episode of With Flying Colors, host Mark Treichel sits down with Steve Farr, a former NCUA examiner and capital expert, to discuss the complexities of credit union capital management. With decades of experience, Steve shares insights into the evolution of capital regulations, the purpose of regulatory capital, and the challenges credit unions face in maintaining the right balance between risk and growth.Key Takeaways:Steve Farr's Background: Steve shares his extensive career journey, from starting as an NCUA examiner in 1987 to becoming a key player in regulatory capital rulemaking.Purpose of Regulatory Capital: Understand why capital is essential for credit unions, from absorbing losses to maintaining public confidence.Net Worth Ratios and PCA: Dive into the history and significance of net worth ratios in ensuring credit union stability.New Complex Credit Union Leverage Ratio (CCULR): Learn about the simplified capital adequacy measure introduced in 2023 and its implications for credit unions.Risk-Based Capital: Explore how this tool provides credit unions with a tailored perspective on their capital adequacy.Capital Management Strategies: Discover best practices for developing a capital plan that aligns with your credit union's unique risks and opportunities.Listener Questions:Have questions about credit union capital or topics from today's episode? Send them to Mark via email at cu.exam.solutions@marktreichel.com or through his website at www.marktreichel.com. Your question might be featured in a future episode!Contact Information:For consulting inquiries or to learn more about how Mark and Steve can assist your credit union, reach out using the above contact details.Closing Thoughts:This episode highlights the importance of a strategic approach to capital management. Whether you're grappling with regulatory requirements or looking to optimize your capital structure, this conversation offers valuable guidance for credit union leaders

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/## Episode Summary: NSF and Overdraft Fees - What You Need to KnowIn this episode, Mark Treichel interviews Joe Goldberg, former director of the NCUA's division of consumer compliance policy and outreach, about the December 2024 NCUA letter addressing consumer harm from certain overdraft and NSF fee practices.### Key Topics Covered:Joe Goldberg discusses NCUA's recent guidance on problematic overdraft fee practices, including:1. Authorized Positive Settled Negative (APSN) fees - When a debit transaction is approved with sufficient funds but settles negative due to intervening transactions2. Multiple re-presentment fees - When members are charged multiple NSF fees for the same check/ACH item being represented3. Return Deposited Item (RDI) fees - When members are charged for depositing third-party checks that are returnedThe episode also covers:- NCUA's historical approach to overdraft oversight since 2005- Risk management principles credit unions should consider- The agency's current supervisory approach and expectations- New research findings on overdraft/NSF fee revenue at credit unions### Key Takeaways:- Credit unions should review their overdraft programs for compliance with current guidance- Self-identification and correction of issues is viewed favorably by NCUA- Overdraft/NSF fees typically comprise 2-5% of credit union revenue- The agency will continue monitoring these fees through call report data- Credit unions should ensure fee practices are fair and clearly disclosed to members### Featured Guest:Joe Goldberg - Former Director, Division of Consumer Compliance Policy and Outreach at NCUA (2014-2021)### Host:Mark Treichel - With Flying Colors Podcast

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/ Episode Description:In this special archive episode of With Flying Colors, Mark shares valuable insights from his years of experience in credit union examination and consulting. Broadcasting straight from the beach, he breaks down the top 10 ways credit unions can avoid receiving a Document of Resolution (DOR) from the NCUA. Whether you're preparing for an exam or just looking to fine-tune your operations, these practical tips will help ensure compliance and maintain a smooth examination process.What You'll Learn in This Episode:Understanding Document Resolutions (DOR): What they are, why they occur, and how to avoid them.Key Triggers for DORs: Common issues such as violations of regulations, policies, or strategic plans.Proven Strategies: How to communicate, negotiate, and train effectively to avoid potential pitfalls.Best Practices: Mark's insights on proactive planning, staying informed, and maintaining good examiner relationships.Top 10 Tips Highlighted in This Episode:Comply with the Federal Credit Union Act and NCUA regulations.Follow your organization's policies diligently.Stick to your approved strategic plan or adjust it responsibly.Communicate effectively with NCUA examiners.Negotiate issues identified during the examination process.Invest in training for staff, boards, and committees.Stay updated with regulatory changes by subscribing to NCUA Express.Listen to informative podcasts like With Flying Colors and Credit Union Regulatory Guidance.Avoid accounting problems by ensuring reconciliations and timely audits.Make senior leadership accessible to examiners during the examination process.Resources Mentioned:NCUA ExpressCredit Union Regulatory Guidance podcastMark's consulting services for NCUA examination supportCall to Action:If you enjoyed this episode, don't forget to subscribe to With Flying Colors for more actionable tips and insights into navigating NCUA exams and credit union compliance. Ratings and reviews on Apple Podcasts and Spotify are always appreciated! 

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Our most downloaded episode of the year:  Our Take on the NCUA Supervisory Priority Letter.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/ The NCUA Appeal Process: A Complete Guide # NCUA Appeal Process with Mark Treichel## OverviewThis 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 AppealedMaterial supervisory determinations that may significantly affect:- Capital- Earnings - Operating flexibility- Nature/level of supervisory oversightSpecifically 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 Timeline1. Initial Appeal to Regional Director   - Must file within 30 days of examination   - Regional Director has 30 days to respond2. 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 Committee3. 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## ResourcesRelated regulations:- Part 746, Subpart A of NCUA regulations- Preamble to final rule provides important context## Contact InformationFor 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.*

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Everthing You Need to Know on ALCO CHARTERS AND GOVERNANCEKey Topics to Include:Committee charters vs. policiesCommittee composition and member selectionBoard involvement considerationsRole of Chief Risk Officer and other key positionsAuthority and delegation frameworkDocumentation requirementsStrategic alignment with board objectives

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/www.marktreichel.comhttps://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.LUAs What You Need to KnowKey Points:- LUAs are formal agreements between NCUA and credit unions to address severe problems- Usually issued to troubled credit unions, though occasionally for compliance reasons- Formal LUAs are typically published by NCUA- LUAs describe major issues and required corrective actions with timelines- Language in published LUAs can be very strict and one-sided- Credit unions should seek outside advice when faced with a published LUA- All board members are bound by an LUA, even those who vote against it- LUAs should focus on root causes, not every minor issue- LUAs for established credit unions generally don't have termination dates- In the current economic climate, NCUA may be issuing more LUAsAdvice for Credit Unions:- Understand all requirements and timelines in an LUA before signing- Negotiate terms with NCUA if possible before finalizing- Request reasonable time to review draft LUA with board- Consider consulting attorneys or credit union advisors - Be aware of reputational risks from published LUAs- Recognize that all board members are bound by a signed LUAGuest Experts:- Steve Farrar: Former NCUA examiner and central office staff- Todd Miller: Former NCUA examiner and director of special actionsHost: Mark Treichel, Credit Union Exam SolutionsThis episode provides an in-depth look at Letters of Understanding and Agreement (LUAs) from former NCUA insiders, offering valuable insights for credit union leaders dealing with these formal 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.Crisis Communication in Credit Unions## Episode SummaryIn this episode, host Mark Treichel sits down with John McKechnie, a veteran in credit union affairs, to discuss crisis communication strategies for credit unions. Drawing from their extensive experience at the National Credit Union Administration (NCUA), they share valuable insights on handling various crises, from financial meltdowns to cyber attacks.## Key Topics Covered:- The importance of quick and transparent communication during crises- Developing and implementing crisis communication plans- Prioritizing stakeholders in crisis situations- Learning from past experiences and conducting post-crisis reviews- Balancing member needs with institutional stability during crises- Adapting communication strategies for different types of crises (e.g., financial, technological)## Notable Quotes:"It's got to go out. It's got to go out quick. It's got to be accurate... if you don't communicate, the vacuum gets created and the water cooler talk starts.""Omar Bradley, during the 2nd World War, used to say that when the fighting starts, plans are useless, but planning is essential."## Takeaways:- Having a crisis communication plan is crucial for credit unions- Transparency and speed are key in crisis communication- Regular tabletop exercises can help prepare for potential crises- Post-crisis reviews are essential for continuous improvement## Guest Information:John McKechnie - Credit Union ConsultantEmail: john@johnmckechniellc.comPhone: 202-997-5816

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Reach out to learn how we assist our clients with NCUA so they save time and money:https://www.linkedin.com/in/mark-treichel/https://www.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.# With Flying Colors Podcast: Fraud and the Necessity of On-Site Exams## Episode SummaryMark Treichel discusses the importance of on-site exams by NCUA (National Credit Union Administration) in detecting and preventing fraud in credit unions. He explores the concept of the Fraud Triangle and explains why a physical presence is crucial in maintaining the integrity of financial institutions.## Key Points1. NCUA Chairman Todd Harper emphasized the need for increased travel budget to accommodate on-site exams.2. Recent credit union failures involved fraud as a contributing factor.3. The Fraud Triangle consists of three elements: pressure, opportunity, and rationalization.4. Physical presence of examiners can deter fraudulent activities by reducing opportunities.5. While virtual examinations have their place, on-site visits remain essential for thorough oversight.## Notable Quotes- "As examiners return on site, they have found an increase in record keeping deficiencies, problems with internal controls, and instances of fraud." - NCUA Chairman Todd Harper- "The opportunities available for committing the fraud motivate the fraudsters to commit the fraud." - Mark Treichel## ConclusionMark Treichel argues that while the pandemic has shown that many examination procedures can be done remotely, NCUA should maintain a balance between virtual and on-site examinations to effectively prevent and detect fraud in credit unions.## Resources Mentioned- Credit Union Exam Solutions: marktreichel.com---*Subscribe to "With Flying Colors" for more insights on achieving success with NCUA.*

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Want to learn how we assist our clients with NCUA so they save time and money?Schedule your free call today:https://calendly.com/cuexamsolutions/talk-to-mark-about-any-exam-topic

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.## Episode SummaryMark Treichel and Todd Miller discuss the importance of good policies in credit unions, their key elements, and how they contribute to high-performing organizations.## Key Points1. Importance of policies in credit unions2. Reasons for having comprehensive policies3. General thoughts on policy implementation4. Common elements of good policies5. The role of board packages in credit union governance## Guest: Todd Miller- Former NCUA employee (1987-2021)- Held roles including examiner, problem case officer, regional capital market specialist, and director of special actions## Detailed Notes### Why Credit Unions Need Comprehensive Policies- Required by regulations- Ensure compliance with laws- Serve as training tools- Set expectations and communicate corporate culture- Establish standards for behavior and performance- Keep management accountable- Help defend against lawsuits### General Thoughts on Policy Implementation- Implementation should happen from the top down- Policies need to be readily accessible to staff- Keep policies current and up-to-date- Document and report policy exceptions- Consequences for not following policies should be clear### Common Elements of Good Policies1. Purpose and objectives2. Establish accountability3. Risk appetite statements4. Limits on individual authority5. System of reports based on risk assessment6. Systematic review dates### Importance of Reporting- Demonstrate compliance with policy- Show trends over time for context- Include early warning indicators- Report on risk limits and policy exceptions### Board Packages- Should contain information the board needs to know, not just wants to know- Reflect the nature and situation of the credit union- In high-performing credit unions, board packages provide transparency on organizational goals and performance## Key Quotes[Include 2-3 key quotes from the "good quotes" section]## Call to ActionSubscribe to With Flying Colors on your favorite podcast app for more insights on achieving success with NCUA. Visit marktreichel.com to learn more about services for credit unions.

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.## Guest: Rick MummFormer NCUA employee with over 34 years of experience, including 25+ years working in CURE (Credit Union Resources and Expansion) and its predecessor offices.## Topics Discussed:1. Field of Membership (FOM) Overview   - Types of FOMs: new charters, adding groups, community, underserved areas, TIPs   - Centralization of FOM at NCUA in 20102. Trade, Industry, and Profession (TIP) Credit Unions   - Challenges in defining and approving TIPs   - Limitations of TIPs (occupational only, not associational)3. Underserved Areas   - Popular FOM addition for multiple common bond credit unions   - Distinction between underserved areas and low-income designations4. Low-Income Designations   - NCUA designation process   - Benefits: no limit on business loans, more non-member deposits, access to grants/loans   - Secondary capital opportunities5. Merger Packages   - Process for merging credit unions   - Field of membership compatibility issues   - Emergency mergers6. Bylaws   - Standard vs. non-standard bylaws   - Rick's involvement in writing the 2020 version of NCUA bylaws7. Other Services   - New charters   - Share insurance questions and training## Key Takeaways:- Rick's extensive experience offers unique insights into NCUA's internal processes- His knowledge can help credit unions create efficient, approvable packages- Understanding the nuances of different FOM types is crucial for credit unions## Contact Information:- Rick Mumm: info@rcuservices.com- Mark Treichel: cuexamsolutions@marktreichel.com- Website: www.marktreichel.com## Notable Quotes:"I've seen, kind of grew up with field of membership from when, you know, as an analyst, I process groups, whereas now, you know, groups are processed online.""I know what CURE is looking for, what holds things up, what doesn't, and can be able to say, 'Hey, you know, you can do that, but you're going to add another two, three months onto the package, or we can do this and it'll get approved a lot faster.'"

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: Equal Credit Opportunity Act (ECOA) Part Two## Episode SummaryIn this episode, Mark Treichel continues his discussion with Joe Goldberg, diving deeper into the Equal Credit Opportunity Act (ECOA) and Regulation B. They focus on the second primary purpose of ECOA: encouraging the informed use of credit through adverse action notices.## Key Points1. Adverse Action Notices   - Purpose: Inform applicants of reasons for credit denial or less favorable terms   - Must provide specific reasons in detail   - Optimal to provide 3-4 main reasons for adverse action2. Special Purpose Credit Programs   - Allow creditors to meet credit needs of specified classes of persons   - Different rules for for-profit and non-profit organizations3. Department of Justice Referrals   - Required when there's reason to believe an institution has engaged in a pattern of illegal discrimination   - DOJ guidance available for identifying practices that may lead to referrals4. New ECOA Section (Effective August 29, 2023)   - Requires collection and reporting of small business lending data to CFPB   - Applies to creditors with at least 100 originations to small businesses for each of the prior 2 years5. Enforcement and Legal Actions   - NCUA enforces for federal credit unions   - Private actions allowed, including class actions6. Compliance Best Practices   - Familiarize with ECOA and Regulation B   - Implement sufficient compliance management system   - Provide regular training for staff involved in lending   - Oversee third-party vendors   - Conduct self-testing and audits## Resources Mentioned- NCUA Fair Lending Guide- NCUA Regulatory Alerts and Letters to Credit Unions- Federal Consumer Financial Protection Guide on NCUA website- CFPB website (consumerfinance.gov) - Fair Lending section## Guest InformationJoe Goldberg: Attorney with 40 years of experience, former NCUA staff member, and consumer compliance expert.## Hosted ByMark Treichel

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/## Episode OverviewA detailed discussion on what makes an effective board package for credit unions, drawing from Todd Miller's 34 years of experience at NCUA. Learn how to create board reports that help directors make informed decisions while satisfying regulatory requirements.## Key Points on Board Packages### Foundation and Purpose- Board packages should reflect management's responsibility to demonstrate compliance with:  - Business plan  - Board policy  - Risk appetite standards- Purpose is to help board members make good decisions regarding their responsibilities- Must balance what boards need to know vs. want to know### Components of Effective Board Packages#### Quantitative Reports- Key Performance Indicators (KPIs)- Key Risk Indicators (KRIs)- Financial reports- Budget updates- Strategic plan progress- Peer comparisons- Dashboard-style summaries preferred over excessive detail#### Qualitative Reports- Clear, concise explanations providing context- Explanations for deviations from plans- Discussion of emerging risks and opportunities- Summaries of committee activities- Analysis of significant trends or changes### Best Practices1. Maintain consistent formatting across all reports2. Use standardized indicators (e.g., red/yellow/green) throughout3. Present data in consistent order (e.g., oldest to newest)4. Include peer comparisons5. Make detailed data available but focus on summaries6. Regular review and updating of package contents7. Address material risks clearly and directly### Common Pitfalls to Avoid- Information overload/data dumping- Inconsistent formatting- Burying significant risks in details- Failing to provide context for decisions- Including outdated or unnecessary reports- Not disclosing material information## Regulatory ConsiderationsNCUA guidance states that "reports to directors should support complete, understandable, and accurate information appropriate to the size and complexity of the credit union."## Key Takeaways1. Focus on helping board members make good decisions2. Provide clear understanding of current situation3. Keep focus on future actions and strategic direction4. Balance detail with clarity5. Maintain consistency in reporting structure

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.## Episode SummaryIn this episode of With Flying Colors, host Mark Treichel welcomes back Joe Goldberg, a veteran attorney with 40 years of experience and former NCUA official. They dive deep into the Equal Credit Opportunity Act (ECOA) and its significance in fair lending practices for credit unions.## Key Points Discussed- The purpose and significance of ECOA and Regulation B- NCUA's increased focus on fair lending examinations- Coverage of ECOA across various forms of credit- The nine prohibited bases for discrimination in lending- Specific examples of potential ECOA violations in credit union practices## Highlighted Quotes- "ECOA requires creditors to make decisions related to providing credit and the terms of credit based solely on credit related factors." - Joe Goldberg- "NCUA has increased its focus on fair lending in the last several years. They even started when I was there. I left there at the end of 2021, but that's still true. And, in fact, the agency is expanding its fair lending examination program." - Joe Goldberg## Important Takeaways for Credit Unions1. Review policies and procedures for potential age or marital status discrimination2. Be aware of the expanding fair lending examination program at NCUA3. Understand the nuances of the nine prohibited bases for discrimination4. Consider the risks associated with Department of Justice referrals for ECOA violations## Next EpisodeTune in for Part 2 of this discussion, where Mark and Joe will continue their exploration of ECOA, including special purpose credit programs and the referral process to the Department of Justice.## About the GuestJoe Goldberg is a former NCUA official who led the division responsible for HMDA, fair lending, and consumer compliance. With 40 years of experience as an attorney, he now works as a consultant in the credit union industry.## Resources Mentioned- NCUA Letter to Credit Unions: 22-CU-04 (February 2022)- Equal Credit Opportunity Act (ECOA)- Regulation B## Get in TouchFor more information on achieving success with NCUA, visit [marktreichel.com](https://marktreichel.com).

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Host: Mark TreichelGuests: John McKechnie and Jeff PacinoKey Topics Discussed:1. Leadership Changes:- Discussion of Trump's election victory and its potential impacts- Changes in Senate Banking Committee leadership with Sherrod Brown's defeat- Tim Scott expected to chair Senate Banking Committee- Elizabeth Warren potentially becoming ranking Democrat on Banking Committee2. NCUA Board Implications:- Anticipated leadership transition from Chairman Todd Harper to Kyle Hauptman- Analysis of NCUA Board dynamics and chairmanship powers- Discussion of Hauptman's term expiring in August 2025- Need for credit union industry experience on the NCUA Board3. Critical Industry Issues:- Potential tax reform efforts in 2025- Importance of credit union advocacy and GAC attendance- Changes in regulatory approach under new leadership- Consumer compliance and budget considerations4. Political Dynamics:- Discussion of Republican control of Congress- Two-year window for administration priorities- Importance of maintaining relationships across party lines- Changes in House Financial Services Committee leadership with McHenry's retirementExpert Analysis: The episode features experienced regulatory and industry veterans providing insights on navigating the changing political landscape and its implications for credit unions.

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: Understanding Credit Culture with Vin Vieten## Episode SummaryIn this episode, host Mark Treichel interviews Vin Vieten, a retired senior credit specialist from NCUA, about credit culture in credit unions. Vin shares insights from his extensive experience in commercial banking, industry, and regulation, offering valuable perspectives on developing and maintaining a strong credit culture.## Key Topics Discussed- Definition of credit culture and its importance in credit unions- Who is responsible for establishing credit culture- How to implement and reflect credit culture in policies and practices- The role of credit culture in credit proposals and actions- Balancing member service with safety and soundness in lending## Notable Quotes- "What credit culture is, is your approach to providing credit to your customers, your members... It's how you're going to, why you're providing commercial financing and, and then really how you're going to do it."- "We're not here just to say yes or no to loans. We're here to provide the right financing for that borrower."- "Appropriate financing for the borrower. That's really what your job is. And that means financing that is paid back within the ability that's structured."## Guest BioVin Vieten is a retired senior credit specialist from the NCUA with 11 years of experience at the agency. Prior to his role at NCUA, Vin worked as a commercial banker, senior loan officer, and controller for a large ready-mixed concrete company, giving him a unique perspective on all sides of the commercial lending process.## Resources Mentioned- NCUA regulation 723 on Member Business Loans and Commercial Loans- Preambles to the proposed and final rules on commercial lending (July 2015 and February 2016)## Upcoming TopicsMark teases future episodes covering:- Credit proposals- Underwriting- Regulatory resources- Credit risk rating systems- Global cash flow analysis## Get in TouchFor follow-up questions or to discuss how Mark and Vin can assist your credit union:- Email: CUExamSolutions@marktreichel.com- Website: www.marktreichel.com

1. Risk Management Framework Components:- Risk Culture - Established by board and management, sets tone from top- Risk Appetite - Formal statements and limits that define acceptable risk levels- Risk Management System - Including the three lines of defense2. Risk Appetite:- Should be commensurate with institution's size and complexity- Must be supported by capital levels- Requires clear metrics and reporting systems- Needs documented processes for when limits are approached or breached- Should be consistently communicated throughout organization3. Three Lines of Defense:- First Line: Front-line business units conducting transactions and operations- Second Line: Risk management department (in larger institutions) led by Chief Risk Officer- Third Line: Internal audit function testing controls and verification4. Key Risk Management Principles:- Risk management culture is foundational to effectiveness- Smaller institutions can accomplish goals without full three lines structure- Need to avoid managing risks in silos- Importance of aggregating risks across organization- Chief Risk Officer role should support but not have veto power5. Best Practices:- Document and communicate risk appetite clearly- Establish appropriate metrics and reporting- Have action plans for when limits are approached- Ensure staff feels comfortable raising risk concerns- Maintain independence of risk oversight functions6. Resources Available:- OCC Director's Reference Guide contains useful guidance on risk governance- Includes questions to consider and potential red flags- Contains comprehensive references on risk and corporate governanceThe episode emphasized that while sophistication levels vary by institution size, core risk management concepts remain consistent and should be applied appropriately based on each credit union's specific circumstances.

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.## Episode SummaryMark Treichel discusses Credit Union Service Organizations (CUSOs) and CUSO examinations, drawing from his experience as a former NCUA Regional Director. He compares CUSO exams to credit union exams and provides insights into what credit unions and CUSOs can expect during these reviews.## Key Points1. CUSO exam frequency and types:   - Less frequent than credit union exams   - Three types: integrated exams, standalone exams, and independent reviews2. NCUA's authority to examine CUSOs:   - Based on agreements between credit unions and CUSOs   - Allows NCUA complete access to CUSO books and records3. Types of CUSOs likely to be examined:   - Those offering new or growing services (e.g., commercial loans, student lending, FinTech)4. NCUA's focus during CUSO exams:   - Systemic risks   - Individual credit union risks   - New or growing services5. Documents NCUA may request:   - Strategic plans   - Disaster recovery plans   - Organizational charts   - Board minutes   - Customer lists   - Policies and procedures6. Corporate veil considerations:   - Ensuring independence between CUSO and credit union operations7. "Primarily serves" requirement:   - Case-by-case determination   - Based on totality of circumstances## Notable Quotes"Getting a CUSO review, if your books and records are clean and your services are well documented and you can do a good job of controlling the narrative when NCUA comes in, when that happens, it's actually, can be a plus."## Upcoming NCUA Developments- Proposed rule on eligible obligations and loan participations expected between July and September## Resources Mentioned- Credit Union Exam Solutions: marktrico.com- CUSO Law: cusolaw.com- Previous podcast episode with Brian Lauer on CUSO regulation changes (episode number to be added in show notes)## Call to ActionSubscribe to "With Flying Colors" on your favorite podcast app for more expert insights on achieving success with NCUA.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Guest Speakers:- Todd Miller - Steve Farrar Key Topics Covered:1. Definition of Corporate Governance- Set of processes, customs, policies, and laws affecting how a corporation is directed and controlled- Structure of rules, practices, and processes that determine corporate culture- Board responsibility for setting corporate culture2. Resources for Directors- NCUA has limited specific resources on corporate governance- FDIC resources recommended:  * Pocket Guide for Directors  * 2016 Supervisory Insights  * Proposed guidance for larger institutions  * YouTube video on corporate governance3. Key Board Responsibilities:- Setting appropriate tone and corporate culture- Approving and overseeing strategic planning (3-5 year outlook recommended)- Establishing and approving policies- Creating code of ethics- Providing active oversight of management- Selecting qualified executive officers- Ensuring ongoing director training- Conducting board self-assessments- Overseeing compensation and performance management4. Important Considerations:- Board composition and diversity of skills/backgrounds- Documentation of strategic plan changes- Importance of independent but cooperative relationship with management- Training and self-assessment requirements- Three lines of defense in risk management:  * Frontline units  * Independent risk management  * Internal auditNotable Quotes:"By and large, directors are very dedicated and do a very good job of keeping our system safe and sound." - Todd MillerResources Mentioned:- FDIC Director's Resource Center- NCUA Required Policies List- Quantum Governance (board training resource)

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.Fair Lending Basics with Joe GoldbergIn this episode, Mark Treichel interviews Joe Goldberg, a former NCUA official, about the basics of fair lending for credit unions. Key topics covered include:- Definition and importance of fair lending- Major fair lending laws: Equal Credit Opportunity Act (ECOA), Fair Housing Act, Home Mortgage Disclosure Act (HMDA)- Types of discrimination: disparate treatment vs. disparate impact - NCUA's fair lending examination program- Tips for credit unions to protect themselves and ensure compliance:  - Know the laws and regulations  - Implement a robust compliance management system   - Provide adequate training  - Maintain oversight of lending practices and third parties- Resources for credit unions to learn more about fair lending requirementsKey quotes:"Fair lending is usually looked at by what is prohibited rather than what is required." - Joe Goldberg"Intent is not an element of violating ECOA." - Joe Goldberg"Credit unions try to get it right, but they don't always do that. The more they can educate themselves, the better off they will be and the better off their members will be." - Joe GoldbergResources mentioned:- NCUA Fair Lending Guide- NCUA Federal Consumer Financial Protection Guide- FFIEC website (ffiec.gov)- CFPB website - NCUA regulatory alerts and letters to credit unions

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/www.oldenlane.com1. Mike Macchiarola from Olden Lane discusses NCUA-assisted credit union mergers and why we may see more of them in the near future.2. Current industry challenges:   - 10% of credit unions are now CAMEL 3, 4 or 5   - ROA is at 69 basis points, lowest in a decade (excluding COVID dip)   - 764 credit unions have zero or negative ROA   - Rising cost of funds, asset quality concerns, fee compression3. Importance of pursuing mergers while credit unions still have "self-determination" rather than waiting for NCUA to dictate terms.4. Overview of the NCUA's Merger Partner Registry and how it's used when an assisted merger is needed.5. Process for NCUA-assisted mergers:   - NCUA identifies potential acquirers from registry   - Interested credit unions sign NDA and receive bidder's package   - Acquirers evaluate opportunity under time pressure   - NCUA seeks lowest-cost alternative but considers multiple factors6. Advice for credit unions considering assisted mergers:   - Hire experienced advisors to help navigate the process   - Be prepared to make decisions with imperfect information   - Understand NCUA's preference for full mergers over purchase & assumptions7. Importance of maintaining strong capital position to be an attractive merger partner.8. Discussion of how NCUA balances cost considerations with ensuring long-term stability when selecting merger partners.Key Quote: "Don't get yourself to the place where the NCUA is dictating terms because your option set is closing. You owe it to your membership, your staff, your management team, your legacy of your institution, its brand and its community not to get there." - Mike MacchiarolaCall to Action: Credit unions considering mergers or concerned about their long-term viability should visit www.oldenlane.com to learn how Olden Lane can assist with strategic planning and merger navigation.