YOUR CAMEL Code is More Important Now
- Mark Treichel
- 4 days ago
- 2 min read
Subtitle : What NCUA’s staffing cuts and rating trends mean for your next exam
📺 Watch on YouTube: Listen on your favorite podcast app such as Transistor
🧭 Episode Summary
In this episode of With Flying Colors, I unpack why your credit union’s CAMEL code matters more than ever in today’s regulatory environment. With NCUA staff cuts, shrinking budgets, and a shift in political winds, examiners are being forced to prioritize—and that means well-rated credit unions may be left alone, while poorly rated ones could face intensified scrutiny with fewer resources.
We analyze the latest insurance report from NCUA, break down the subtle but
significant shifts in CAMEL 3s, 4s, and 5s across asset classes, and discuss how regulatory staffing changes will affect your next exam. Whether you’re trying to stay out of trouble or climb your way out of a Code 3 or 4, this episode offers clear-eyed guidance.
📝 Key Takeaways
📉 CAMEL 3, 4, and 5 credit unions declined slightly—suggesting cautious optimism, though large credit unions saw worsening trends.
🚨 If you're a Code 1 or 2, NCUA might deprioritize you—so now is the time to maintain strong management and governance.
🔄 Larger, complex credit unions (over $500M) saw an uptick in Code 4s and 5s, signaling increased risk or aggressive enforcement.
👥 NCUA staff cuts and early retirements will stretch examiner resources, especially in specialized areas like lending and IT.
🧩 Fewer specialists and supervisory examiners mean less flexibility and potentially more rigid DORs for troubled institutions.
🗣️ If you're a CAMEL 3–5, communication with your exam team is critical—make it easy for them to recognize your improvement.
💬 Quote from the Episode
“If you're a Code 1 or Code 2, you're about to be invisible—and that’s a good thing. But if you're a Code 3 or worse, you need to over-communicate and over-deliver.”— Mark Treichel, Host, With Flying Colors
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