The appointment of J. Mark McWatters as acting chairman of the NCUA board will have little immediate impact on agency policymaking, advocates predicted Thursday.
“It’s going to business as usual, if you will,” said Andy Price, CUNA’s senior director of advocacy and counsel.
President Trump on Thursday appointed McWatters, a Republican, to replace Rick Metsger, a Democrat, as chairman. Metsger remains on the board. There is one vacancy on the board and presumably, Trump would select another Republican to serve.
However, while McWatters’s designation does not require Senate confirmation, a new member of the board would be subject to Senate approval. That process, which would have to move through the Senate Banking Committee, could take a significant amount of time.
Following the selection, McWatters said, “I remain committed to bringing true regulatory relief to the extent permitted by applicable law and to protecting the deposits of the more than 106 million Americans who rely on federally insured credit unions for their financial needs, all in a manner that ensures the safety and soundness of the National Credit Union Share Insurance Fund.”
Metsger also said he expects a smooth transition.
“He and I have mutual respect for, and trust in, one another, and I think we have accomplished a good deal in the past nine months. Our commitment to working together for a safe and sound credit union system remains the same,” he said.
Credit union advocates confirmed that McWatters and Metsger have developed a collegial relationship and said the board is operating smoothly with two members. And they added that there is no reason to believe that the working relationship will change despite the new chairman.
“McWatters and Metsger have worked together incredibly well as a two-person board with each coming from a different party,” said former NCUA Board Chairman Dennis Dollar, now a principal partner at Dollar Associates in Birmingham, Ala. “I think the manner in which they found a way for a bipartisan and unanimous vote on a very complex field of membership rule was a stellar example of how a board that is one short of membership should work and not automatically find reasons to kick the can down the road on key and vital issues.”
NASCUS President/CEO Lucy Ito agreed that McWatters has developed an effective working relationship with Metsger.
“During the period when Rick Metsger was chairman, he worked closely with him in a show of solidarity and cooperation, that we think benefited the entire credit union system,” she said.
As chairman, McWatters is likely to continue a push for transparency in the agency, as well as improvements to the appeals process and a move toward allowing more examinations to be conducted remotely, said Paul Gentile, president/CEO of the Cooperative Credit Union Association.
And having two members on the board should not have an impact on momentum on the board, he said.
“Two members can get a lot done,” Gentile said.
The speed with which Trump designated a chairman delivers a positive message to the credit union community, said Marvin Umholtz, president/CEO of Umholtz Strategic Planning & Consulting Services in Olympia, Wash.
“Designating a Republican like McWatters to chair the NCUA Board within the first weeks of the Trump administration also indicates that the administration wants leadership at the federal credit union agency that is prepared to set a new direction compatible with President Trump’s initiatives,” he said.
NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt said credit unions have high expectations for the reconstituted board.
“Certainly, NAFCU members would welcome the elimination or streamlining of unnecessary regulations to continue to create a positive environment for credit unions,” she said.
