ESCUD Urges Incoming NCUA Chair To Ease 'Examination Exhaustion' At Small CUs
By CU Today Staff —
KENNEWICK, Wash.— As the Senate advances confirmation of John Crews as the next NCUA chairman, the Endangered Small Credit Union Defense (ESCUD) has sent a letter calling for immediate relief from what it describes as “examination exhaustion” at the nation’s smallest credit unions.The July 17 letter focuses on three actions ESCUD says are fully within NCUA supervisory authority: reducing oversized examiner teams and on-site time at healthy small institutions, curbing examiner demands that exceed regulatory minimums, and relying more on supervisory committee and external audits rather than duplicating reviews.
ESCUD’s January 2026 survey of small CU CEOs ranked regulatory compliance burden as the second-most significant challenge to financial health. “Examiner over-compliance pressure” and “examination exhaustion” ranked among the top four most painful issues. Nearly 75% of respondents expressed low confidence their small credit union would remain independent and thriving in ten years.
The letter acknowledges recent deregulation wins under outgoing Chairman Kyle Hauptman — including simplified AUP audit signatures, acceptance of supervisory committee account verification reviews, board-meeting flexibility, and updated vital records guidance — but argues examination practices remain a high-impact area needing further attention.
ESCUD, a 501(c)(4) nonprofit representing 34 endorsing small credit unions serving more than 200,000 members with over $1.5 billion in assets, also expressed readiness to partner on mortgage-credit priorities tied to President Trump’s March 13 Executive Order, including NMLS and HMDA relief for low-volume institutions.
President Doug Wadsworth offered to provide the full survey data, compliance-cost examples, and CEO testimonials, and requested a meeting with Crews or his staff at the earliest opportunity.
The full letter and supporting resources are available at www.endangeredsmallCUdefense.org.
Originally reported by CU Today.