Credit Union Protections

A significant part of our focus with this update involved examination issues. While we have a very strong exam program in Michigan, we are always working to refine and improve the exam experience.

The following are specific updates made to the MCUA that are effective September 7, 2016:

Exam best practices

• Reports of examination are barred from including recommendations or finding deemed as "best practices" (things not required by law, regulation or safety & soundness). Examiner best practice recommendations will need to be provided in a separate addendum to the exam report.
• New exam language
  The new language bars regulatory punishment for refusal by a credit union to comply with best practices. The amended law recognizes that the Credit Union Board and management are responsible for the operations of the credit union and are empowered to exercise their business judgement in running the operations of the credit union.
• Exam transparency
  DIFS will now be required to issue credit unions guidance within 1 year on exam scoping and appeals, for the sake of transparency.
• New protections on exam reports–more confidentiality
• Creation of CU Regulatory Fund
  The Credit Union Regulatory Fund is created to hold all fees collected from credit unions pursuant to the MCUA. All funds held in the regulatory fund will be protected from transfer to the general fund and are required by law to be used for credit union regulatory and administrative purposes.