Legislative & Regulatory Update

​Changes underway at the National Credit Union Administration; political implications and speculation about the future of the regulatory agency. 

by John Alexander, Director of Legislative & Regulatory Affairs

Navigating Changes at the NCUA
As we approach the close of the year, the focus often shifts to holiday preparations and tying up loose ends. However, this week brought significant developments in the credit union space, particularly concerning the leadership of the National Credit Union Administration (NCUA).

DakCU and several other leagues had the opportunity to meet with influential NCUA officials, including Acting Regional Director John Kutchey, Associate Regional Director Mike Dyer, and Associate Regional Director NancyRae Kjelgaard. This meeting comes at a pivotal time, especially with the retirement of Cherie Freed, the former Western Region Director of the NCUA, earlier this year.

Cherie Freed’s Legacy and Transition
As you know, Cherie Freed retired in August 2024 after a remarkable 37-year career with the NCUA. She began as an examiner in Phoenix in 1987 and progressed through roles that shaped the organization’s supervisory and risk analysis functions.

John Kutchey, previously the Eastern Region's Regional Director, stepped in to oversee the Western Region, with Mike Ryan acting as Regional Director for the Eastern Region. This period of transition truly shows the importance of strong leadership within the NCUA, especially with all the new examiners, and the lack of industrial knowledge as the agency navigates the implications of upcoming political changes.

Political Dynamics and the Future of the NCUA
With a possible presidential administration transition on the horizon, questions and speculation about the future leadership of the NCUA are intensifying. Discussions during the recent meeting focused on potential changes to the NCUA Board’s composition and chairmanship.

Currently, Todd Harper serves as the NCUA Chairman, having been reappointed by the Biden administration. However, a shift in the presidency could lead to calls for Harper to step down, potentially paving the way for Vice Chairman Kyle Hauptman to take the lead. This would mark a historic reversal, as Harper was the first chairman to be reappointed under a Democratic administration.

A new administration could approach the NCUA leadership transition in a few ways:

• Retain Hauptman as interim chairman and appoint one new Republican board member; or
• Introduce two entirely new members alongside a new chairman, reshaping the board's structure and priorities.

These decisions will have lasting implications for credit unions. Will this bring balance to the force as we move past climate change and perceived partisanship?

What This Means for Credit Unions
As these leadership transitions unfold, credit union professionals and members should prepare for inevitable shifts in regulatory priorities. Key areas to monitor include changes in supervisory approaches, policy focus, and overall governance at the NCUA.

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