Todd Harper Selected as New NCUA Board Chairman

The NCUA board began facing a potential shift in direction Monday, as President Biden appointed Democrat Todd Harper — a critic of several recent agency actions — to serve as board chairman.

Harper is the lone Democrat on the NCUA board; Rodney Hood and Kyle Hauptman are Republicans. And in recent months, Hood and Hauptman have approved several proposals that Harper has vehemently opposed.

He went so far as to call one plan “half-baked.”

Credit union trade groups congratulated Harper on his appointment, which had been widely expected following the election of Joe Biden as president, and thanked Hood for his service as chairman.

“Over the years, NAFCU has enjoyed a strong relationship with Chairman Harper,” NAFCU President/CEO B. Dan Berger said. “We look forward to working with him as he leads the agency to address challenges facing the credit union industry. NAFCU will continue to advocate for an appropriate regulatory environment that allows credit unions to successfully serve their 123 million members.”

“CUNA, Leagues and credit unions thank Chairman Hood for his work leading (the) NCUA as it removed regulatory barriers to help credit unions serve members through the COVID-19 pandemic,” CUNA President/CEO Jim Nussle said. “We also congratulate incoming Chairman Harper and look forward to continued engagement with him as he leads (the) NCUA through the pandemic and economic recovery.”

Discussing Harper, NASCUS President/CEO Lucy Ito said that “state regulators and credit unions recognize the breadth and depth of his knowledge of the consumer financial services market and his dedication to a robust dual chartering framework that ultimately benefits members of both state and federal credit unions.”

Following his announcement as chairman, Harper outlined his priorities.

“The credit union system now sits at the intersection of several crossroads, and the agency faces many decisions ahead related to the economic fallout of the COVID-19 pandemic and the need continue to focus on four policy priorities: Capital and liquidity, consumer financial protection, cybersecurity, and diversity, equity and economic inclusion,” he said. “Each of these priorities are vital in responding to current economic and marketplace realities.”

Harper also outlined his regulatory philosophy — that the agency must be “fair and forward-looking; innovative, inclusive and independent; risk-focused and ready to act expeditiously when necessary; and engaged appropriately with all stakeholders to develop effective and efficient regulation.”

He pledged to negotiate with Hood and Hauptman, “looking for: Win-win compromises, whenever practicable.”

Before joining the NCUA board, Harper served as director of the agency’s Office of Public and Congressional Affairs, and chief policy advisor to former NCUA Chairwoman Debbie Matz and former board member Rick Metsger before Metsger became chairman.

Former NCUA chairmen said that because of that experience, Harper is uniquely qualified to run the agency.

“As a result of his tenure at (the) NCUA, as a senior advisor and then board member, he will hit the ground running in making (the) NCUA once again an employer of choice, ensuring consumer protections and in keeping the credit union system safe and sound,” Matz said. “As one of my trusted senior advisors, I can say unequivocally that few people work harder, achieve more and are more thoughtful than Todd.”

Metsger said that as the nation faces the challenges of the pandemic, Harper is eminently qualified to lead the agency in difficult times. “I had the honor of working closely with Todd when I was the agency’s chairman and I know he will be a staunch defender of the safety and soundness of the system and the interests of credit union members,” he said. “He will be a forceful advocate for consumer protection and economic equality and opportunity.”

Harper brings a unique perspective to the chairmanship, having served as a congressional staffer, an NCUA board member and now a board member, former NCUA Chairman Michael Fryzel said.

“His experience and knowledge of credit unions will enable him to pursue a progressive agenda centered on safety and soundness, consumer protection, member access and credit union growth,” Fryzel said. “In addition, he has the ability and willingness to work both sides of the aisle to achieve consensus, cooperation and collaboration.”

Former Board Chairman J. Mark McWatters, a Republican, said that he had the opportunity to work with Harper for more than six years “in a collegial, collaborative and bipartisan manner to ensure the safety and soundness and consumer protection mission of the agency.”

Former NCUA Chairman Dennis Dollar said that during his first year as chairman in 2001, there were two Democrats on the board, and he was the lone Republican. Yet, he said, the board was able to operate well.

“It is a matter of working with your board colleagues, not trying to dominate – but providing leadership that is willing to give and take to get things done,” he said. “Todd’s background has shown he can do that, and that will be his opportunity as he moves forward as chairman with a split party board.”

But in recent months, Harper has been blunt as he opposed several matters approved by his Republican colleagues.

For instance, earlier this month, the NCUA board approved, 2-1, a proposed rule that would expand the permitted activities of CUSOs. Harper, who cast the lone opposing vote, said the plan would dilute the common bond of federal credit unions.

“What is more, the proposal would create a Wild West within the credit union space with little accountability for protecting consumers,” he said.

And on the proposed rule to increase the threshold of “complex” credit union to $500 million, Harper said, “Once again, we are presented with a proposal that is bad public policy, has nothing to do with helping credit unions and their members weather the economic crisis caused by the COVID-19 pandemic, and is half-baked.”

Before joining the NCUA as a staffer, Harper served as staff director of the House on Capital Markets, Insurance, and Government-Sponsored Enterprises Subcommittee and as legislative director and senior legislative assistant to former Rep. Paul Kanjorski (D-Pa.).