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📝 Episode Summary:

In this post-Memorial Day episode, Mark dives into NCUA’s latest insurance fund update with a sharp focus on CAMEL codes—and why they matter more than ever in today's regulatory landscape. With NCUA facing staffing cuts, hiring freezes, and leadership questions, your credit union's CAMEL rating may determine how much attention (or relief) you're about to get.

Mark walks through key takeaways from the data, trends in ratings across credit union size categories, and why being a CAMEL 1 or 2 could lead to fewer exams—while CAMEL 3, 4, and 5 credit unions face a leaner, potentially more stressed NCUA.

🔑 Key Topics Covered:

• Overview of NCUA's recent briefing and CAMEL code performance
• Declines in CAMEL 3s, 4s, and 5s—what’s real and what’s merger-driven?
• Increased risk for complex credit unions ($500M+)
• Impact of staffing reductions on supervision intensity
• Why being a CAMEL 1 or 2 may now mean more operational flexibility
• What Kyle Hauptman said—and didn’t say—about being the only board member
• Speculation on NCUA’s future organizational structure

📌 Takeaways:

• CAMEL codes improved overall, but large credit unions saw some deterioration.
• NCUA’s downsizing and hiring freeze will shift how and when exams occur.
• Your credit union’s CAMEL code now plays an even bigger role in how much NCUA interacts with you.
• Good communication and organized documentation are essential if you're a CAMEL 3–5 credit union.
• The regulatory future may hinge on ongoing lawsuits and Supreme Court decisions about agency power.

⭐ Support the Show:

If you enjoyed the episode, please rate us 5 stars and share the podcast with your credit union colleagues. It helps us get the word out!

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The NCUSIF and the DIF are similar but different.  Today we do a deep dive on that and more.

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Trump’s Workforce Cuts Hit NCUA: What’s Changing, What’s Next

Show Notes

In this episode of With Flying Colors, Mark Treichel breaks down the biggest NCUA update in years — a Trump-era Executive Order has triggered a 20% voluntary staff reduction at the agency.

This May 22 board briefing outlines how the NCUA will operate with fewer people, a tighter budget, and a restructured exam program — all while staying focused on its core mission.

1. 20% Staff Reduction by Year-End
   NCUA is cutting 250 positions — driven by Executive Order 14210.
2. No Layoffs, All Voluntary
   Staff could opt for paid leave (NDRP) or a $50K incentive (NVSIP).
3. Program Exceeded Target
   297 enrolled; around 250 will actually depart — above the 217 needed.
4. HQ Was Hit Hardest
   30% of HQ staff enrolled vs. 20% in the regions — right-sizing in progress.
5. Hiring Freeze Through July 15
   Replacements limited to 1 hire for every 4 departures, only in top-priority roles.
6. Realignment Likely
   Signals point to fewer departments, streamlined reporting, and a leaner structure.
7. Extended Exam Cycles
   Well-run credit unions get more time between exams — up to 24 months in some cases.
8. $75M in Budget Savings Expected in 2026
   Minimal 2025 savings due to admin leave; big gains next year.
9. Agency Admits: 'Less with Less'
   NCUA is trimming low-value work and asking staff for smarter, simpler workflows.
10. Tech + Targeted Hiring Ahead
    Come 2026, investments in automation and skilled examiners are planned.

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Document of Resolutions can be complex or simple.  Regardless, they usually have many steps that NCUA doesn't realize, but you need to track.  We discuss the ins and outs of DOR project management in this archive episode.

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In this episode of With Flying Colors, host Mark Treichel reconnects with Ryan Donovan, President and CEO of the Council of Federal Home Loan Banks (FHLB). Ryan returns to discuss the evolving role of the FHLB system, its relationship with credit unions, and how liquidity is much like oxygen—often unnoticed until it's urgently needed.

Ryan and Mark explore:

• The history and mission of the Federal Home Loan Bank system.
• How FHLB provides daily liquidity to its members and why it's a critical tool—not just in times of crisis.
• The difference between the FHLB system and the Federal Reserve as liquidity sources.
• How FHLB and credit unions are "cooperative cousins" working together to strengthen communities.
• The system's record-breaking $1.2 billion commitment to affordable housing initiatives.
• Director Bill Pulte's early signals and what his leadership at FHFA could mean for FHLB and the credit union system.
• Why credit unions, especially smaller ones, should consider joining the FHLB system to strengthen their balance sheets and enhance loan capacity.

Ryan also highlights recent research showing that FHLB membership helps credit unions grow faster, remain competitive, and support their members more effectively—all while maintaining safe and sound lending practices.

Key Takeaways:

• FHLB isn’t just a lender of last resort—it’s a daily liquidity partner.
• Affordable housing remains a priority, with FHLB surpassing its statutory requirements.
• Credit unions can amplify their impact by leveraging the FHLB system.
• Regulatory dynamics are shifting, but FHLB's mission remains steady: Keep liquidity flowing to local lenders.

Resources Mentioned:

• Council of Federal Home Loan Banks
• FHLB & Credit Union Liquidity Research by Filene Research Institute
• Follow Ryan Donovan on LinkedIn

Connect with Mark Treichel:

• LinkedIn: Mark Treichel
• Website: Credit Union Exam Solutions

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NCUA is hitting corporate governance hard.  In this episode we discuss why and what to do if it happens to you.

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This post on LinkedIn led to this podcast:  Growing this program from an idea, to an incredible technological platform is far and away the most rewarding venture of my career. The platform has allowed our company to think and dream of bigger ideas. It’s functionally changed the lives of so many of us. To say I’m proud of this achievement is an understatement. A huge kudos to Alloya Corporate FCU for taking a risk on a young kid with some wild ideas and a sincere thank you for the team who made it all possible.

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The dreaded organizational review Document of Resolution or worse yet LUA.  What it means and what you should do.

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NCUA has reopened the Succession Planning Rule for public comment.  In this episode JT Blau and I discuss the rule and its requirements.

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Presidential Power and Independent Agency Autonomy: The 2025 NCUA Board Removal Case

I. Legal and Constitutional Framework

• A Constitutional Showdown Begins
• From "At Pleasure" to Independence: The 1978 Restructuring
• The Humphrey's Executor Precedent: Protecting Independent Agencies
• Unitary Executive vs. Congressional Design
• The Narrowing Path of Agency Independence
• Swan v. Clinton: The Precedent That Wasn't Quite
• 50 Years of Respect for Fixed Terms

II. The NCUA's Specific Structure and Functions

• The Removed Regulators: Harper and Otsuka
• The NCUA: A Core Financial Regulator
• Executive Function or Independent Regulation?
• The NCUSIF: Owned by Credit Unions, Not Government
• The Central Liquidity Facility: A Link to Treasury
• Operating Without a Quorum
• Financial Stability at Stake

III. Litigation Strategy and Broader Implications

• Six Legal Theories for Victory
• David vs. Goliath: The Legal Team
• The Long Road to the Supreme Court
• Beyond NCUA: Implications for the Administrative State