Directors Harper and Otsuka Removed from NCUA Board

In an unexpected development, Todd Harper and Tanya Otsuka were removed from the National Credit Union Administration (NCUA) board yesterday, leaving the agency with only one board member, Chairman Kyle Hauptman. This change has raised concerns about the NCUA’s ability to maintain independent oversight of the nation’s $2.3 trillion credit union sector.

The NCUA was established by Congress as an independent agency to regulate and insure the nation’s credit unions. Under the Federal Credit Union Act, the board must have at least two members to implement any new actions. However, the agency can still carry out its supervisory and examination duties. Today’s NCUA Board meeting, which was set to discuss the agency’s Voluntary Separation Programs, has been canceled.

“Despite the uncertainty surrounding the NCUA, CrossState remains committed to supporting credit unions and advocating for an independent NCUA,” said Patrick Conway, President & CEO of CrossState. “Collaborating with stakeholders and key partners, CrossState is focused on mitigating any unintended consequences so credit unions can continue serving their members and communities effectively.”

CrossState’s Advocacy Team is actively engaging with New Jersey’s and Pennsylvania’s Congressional delegation and working alongside America’s Credit Unions to closely monitor developments. CrossState will keep you informed with updates as they become available.