Legislation that would improve the federal examination process for credit unions and other financial institutions has been introduced by Sens. Jerry Moran (R-KN) and Joe Manchin (D-WV). S. 727, the Exam Fairness Bill, would allow credit unions and other financial institutions to know why examiners made the decisions they did on their exams. The exam fairness bill would also:
Codify certain examination policy guidance
Establish an ombudsman at the Federal Financial Institution Examination Council to which financial institutions could raise concerns with respect to their examination
Establish an appeals process before an independent administrative law judge
The League and CUNA are both behind the bill. CUNA has called examination fairness legislation "a firm step in the right direction toward ensuring the federal financial institution regulatory agencies conduct fair exams which are consistent with the law and regulation and ensure safety and soundness."
A house companion bill, HR 1553, was introduced by Reps. Shelly Moore Capito (R-WV) and Carolyn Maloney (D-NY). Reps. Bill Posey (R-FL) and Dennis Ross (R-FL) were among the original 27 co-sponsors of exam fairness.