Senators Jerry Moran (R-Kan.) and Joe Manchin(D-W.Va.) reintroduced a bill on Wednesday that aimed toimprove the examination process for financial institutions.

The senators previously introduced the legislation in 2013.The new bill largely reflects the language of the previous bill,which would provide financial institutions with the informationused as the basis for decisions in an examination, and establish anombudsman at the Federal Financial Institution Examination Council.Financial institutions could raise concerns about their examinationwith the ombudsman.

Patrick Miller, president/CEO of the $405 million CBC FederalCredit Union in Oxnard, Calif., included CUNA's support for thebill in his testimony at a House Financial Services Committeehearingon Wednesday.

“Examinations should be based on the laws Congress enacts andthe regulations that NCUA promulgates, not on examinerinterpretation of best practice or guidance,” Miller said in hiswritten testimony for the hearing on preserving consumer choice andfinancial independence. “Further, financial institutions need anexamination appeals process that is independent and protects themfrom examiner retaliation.”

Peggy Bosma-LaMascus, president/CEO of the $500 million PatriotFederal Credit Union in Chambersburg, Pa., expressed NAFCU'ssupport for the bill in her testimony as well.

“Credit unions face more examiner scrutiny than ever, as theexamination cycles for credit unions have gone from 18 months to 12months since the onset of the financial crisis, even though creditunion financial conditions continue to improve,” her writtentestimony stated.

“Additional exams mean additional staff time and resources toprepare and respond to examiner needs,” Bosma-LaMascus added.“NAFCU has concerns about the continued use of Documents ofResolution (DOR) when they are not necessary or are used in placeof open and honest conversations about examiner concerns.”