WASHINGTON–Is the country headed for a world in which each time control of the White House changes, directors and board members at independent agencies are fired and replaced, resulting in agencies pivoting in new directions and whipsawing markets and regulated institutions?

It’s too early to say, according to representatives of the CU trade associations, as courts have largely yet to weigh in on the issue in the wake of the Trump administration’s wholesale firings of Democrats as it wrests control over the agencies.

For credit unions the issue became a reality last week when NCUA’s Todd Harper and Tanya Otsuka were fired from their positions on the three-member board. No one is sure which direction the agency will turn now, although it’s certainly to be in different direction than under Harper when he was chairman under the Biden administration.

NCUA issued a statement last week that under Board Chairman (and lone board member) Kyle Hauptman it will be working to “address any unnecessary regulatory barriers to their prosperity, and provide excellent service to the public.”

‘Don’t Know Where to Begin’

But what might potentially happen in 2029?

“We don’t know how to even begin to speculate on a situation like that, but that’s what I was trying to get at last week (during a call with the media) when I was suggesting that financial services companies and credit unions appreciate consistency and predictability,” said Nussle. “So, anything that makes that difficult to challenge, that whipsaws back and forth, can be problematic and that’s the concern. Sometimes that will occur in a way that people will like and sometimes it will happen in a way that people may not appreciate…To me, this is the reason why we continue to support having, an independent agency at NCUA and a full contingency of board members.

“Historically, it has helped to alleviate that kind of back and forth, the changes that might interrupt or might cause a lack of consistency or a lack of certainty for credit unions as they manage their risk, as they plan for their futures and as they continue to serve their members,” Nussle continued.

What to Roll Back?

Asked if there are specific regulations the trade group would like to rollback or eliminate, Nussle said America’s Credit Unions and the state leagues have been clear about their priorities, but he doesn’t want to speculate on what Hauptman might prioritize.

Among areas where ACU would like to see some changes, Ann Petros, VP-policy engagement and credit union operations with America’s Credit Unions, pointed to ACU’s earlier requests for additional flexibility when it comes to membership regulations, capital requirements, and a variable or floating interest rate ceiling.

“All of these we would hope are things that NCAA is willing to take up, but you know that that may not be something that Chairman Hauptman wants to do right now and we don’t know exactly where his priorities lie right now,” Petros stated.