Over 90 attendees heard from NCUA Eastern Regional Director John Kutchey about what to expect during the examination process.

Kutchey outlined the NCUA’s key areas of focus for this year:

• Interest Rate Risk
• Liquidity Risk
• Credit Risk
• Fraud Prevention and Detection
• Cybersecurity
• Consumer Financial Protection

He said examiners will be taking a closer look at overdraft programs, so credit unions should be prepared to share the following:

• Overdraft policies, procedures and member disclosures
• Routine monitoring reports, reviews and audits of overdraft programs
• Website advertising
• Balance calculation methods and settlement processes
• Adjustments made to address compliance risk and potential consumer harm from unanticipated overdraft fees

Kutchey also shared that the NCUA will also implement a new management questionnaire designed to enhance the identification of fraud red flags, material supervisory concerns or other potential risks. The questionnaire will be sent to credit unions in the pre-exam planning stage.

For more details about the NCUA’s 2023 Supervisory Priorities, click here.