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Never Ending Examinations?

How Can I Miss You When You Won’t Go Away?

This is the name of a great song by the late great Dan Hicks and the Hot Licks.

It is also what credit unions feel when NCUA decides they want to do a follow-up examination.

To justify a follow-up examination they typically need to CODE you a CAMEL 3.

Sadly I have spoken to several CEOs who have their examiners say things like:

“I need to code you a 3 so I can do a follow-up."

At best this is an inappropriate thing to say. At worst this is classic confirmation bias.

What’s confirmation bias?

Confirmation bias is the tendency to search for, interpret, favor, and recall information in a way that confirms or supports one's prior beliefs or values.[1] People display this bias when they select information that supports their views, ignoring contrary information, or when they interpret ambiguous evidence as supporting their existing attitudes. The effect is strongest for desired outcomes, for emotionally charged issues, and for deeply entrenched beliefs. Confirmation bias cannot be eliminated entirely, but it can be managed, for example, by education and training in critical thinking skills.

Said another way, confirmation bias is conclusions in search of facts to support it. I am not saying this happens during all exams, but it does happen.

Follow-up examinations cost you time and money.

I help credit union CEOs achieve the best possible examination results. If you would like to discuss how I can assist, reach out to me at, or schedule your FREE strategy session by clicking HERE


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