WASHINGTON—In a move described as having the potential to “change the rulemaking and interpretive legal process dramatically,” the White House has issued a sweeping executive order that outlines presidential supervisory control of the entire executive branch, including the NCUA and CFPB.
According to the White House, the executive order is designed to ensure that all federal agencies, including independent agencies, are accountable to the president.
“Notably, all federal government departments and agencies under the executive branch are to submit all proposed and final regulatory actions to the Office of Information and Regulatory Affairs (OIRA) within the Executive Office of the President before publication in the Federal Register,” noted America’s Credit Unions in its review of the executive order. “The order also requires independent agencies to have a liaison to the White House.
“Of utmost importance to credit unions, the order clarifies that the president by and through the attorney general is the final arbiter of legal interpretations of statutes agencies follow,” America’s Credit Unions continued. “This could impact interpretations of the Federal Credit Union Act, including preemption.”
Additional Directives
The trade group noted the order also calls for the director of the Office of Management and Budget on an ongoing basis to:
·    Review independent regulatory agencies’ obligations for consistency with the president’s policies and priorities
·    Consult with independent regulatory agency chairmen and adjust such agencies’ apportionments by activity, function, project, or object, as necessary and appropriate.
‘Dramatic’ Potential
“Should this executive order survive legal scrutiny by the courts, it would change the rulemaking and interpretive legal process dramatically,” Carrie Hunt, chief advocacy officer with America’s Credit Unions, said in a statement. “While we are already living in a post-Chevron world where agencies are given little deference to how they interpret statutes, this would be a totally new era linking agency action to the sitting president.”
NCUA rules would still have to be agreed to by the full NCUA Board, which is now headed by new Chairman Kyle Hauptman.
New Tracker Created
America’s Credit Unions said it has created an executive order tracker for members to track the executive orders that have been issued under the new administration and what they mean for credit unions.

Credit Union Advisory Council Eliminated

Separately, the Trump administration today issued an executive order that eliminates the Credit Union Advisory Council (CUAC) to the Consumer Financial Protection Bureau (CFPB).

The move comes as the administration continues its efforts to dismantle the consumer watchdog, with Reuters reporting that signage marking the CFPB’s headquarters in Washington being removed overnight.

‘Critical Forum’

“The CUAC provided a critical forum for credit unions to share their expertise with CFPB leadership, to help them understand the real-world impacts on the 140 million Americans who rely on credit unions,”  James Akin, the head of regulatory affairs for America’s Credit Unions said in a statement. “While credit union expertise was not always heeded, eliminating this council removes an essential channel for dialogue. In the absence of the CUAC, we will increase our direct engagement with the CFPB. Our industry’s mission, to prioritize people over profit, remains unchanged, and we will continue to push for policies that protect the cooperative financial system.” 

President Trump’s order also eliminates an advisory council on academic research. 

The move is just the latest by the Trump administration to eliminate the CFPB. Most CFPB workers were earlier told to not come to work, and its former executive director, Rohit Chopra, has been fired. The president has nominated Jonathan McKernan for the post.

Council Members

Members of the Credit Union Advisory Council included:

• Chad LaFlash, AVP Research & Product Strategy, University of Wisconsin Credit Union, Madison
• Floyd Rummel, III, CEO, Northern Hills Federal Credit Union, Sturgis, S.D.
• Suzanne Weinstein, president & CEO, Orlando Credit Union, Florida
• Shawn Wolbert, president /CEO, GHS Federal Credit Union, Binghamton, N.Y.
• Kimberly Jones, Self-Help Credit Union, Chicago
• Andy Grimm, president/CEO, Apple FCU, Fairfax, Va.
• Sharon Grieger, chief risk officer, Vantage West Credit Union, Phoenix

The CFPB which was created in the wake of the 2008 financial crisis, has frequently been opposed by credit unions, while some within the CU movement have praised its role in providing consumer protections around financial products.