League Holds Virtual Meetings with NCUA Vice Chair Hauptman; Treasury Official

Last week the League held separate virtual meetings NCUA Board Vice-Chairman Kyle Hauptman and Treasury Deputy Secretary for Financial Institutions Graham Steele.

NCUA Board Vice-Chairman Kyle Hauptman

On Wednesday, 12 member credit unions joined in on a roundtable discussion with NCUA Board Vice Chairman Kyle Hauptman. Hauptman began by sharing his thoughts on the U.S. economy and what he sees as the top risks for credit unions, which includes a slowdown in auto sales, likely increases in auto delinquencies, and high consumer credit card debt.  He noted that while housing and mortgages still pose a challenge, the overall market looks better than it has in the past due to homeowners having more equity in their homes.  Also discussed was the pending confirmation of new NCUA Board member Tanya Otsuka, the NCUA’s increasing focus on consumer compliance, and the Board’s recently proposed 2024-2025 budget.

Vice Chairman Hauptman answered questions on how emerging technology and AI can best be used by credit unions. He noted his support of allowing the use of new technologies and AI by credit unions, stating as a Board member he does not want the NCUA to hurt credit unions by preventing the use of new technologies. He also noted how the NCUA is using new technology and AI to assist in its role as a regulator. Other topics brought up by attendees included the role of the CFPB as a financial regulator and field-of-membership rules and regulations.

Assistant Secretary of the Treasury for Financial Institutions Graham Steele

On Thursday, nine credit unions joined the League in a virtual meeting with Assistant Secretary of the Treasury for Financial Institutions Graham Steele. The conversation began with the U.S. Economy and the stability of the banking system but much of the conversation involved the increases in fraud and cyber incidents credit unions are seeing daily. Credit unions report substantial costs associated with these attacks and the amount of resources needed to mitigate these risks and losses. Also discussed was the Community Development Financial Institutions (CDFI) Fund and its new application requirements.

The League thanks those who attended our meetings last week with the NCUA and Treasury.  We will be meeting with Reps. Spanberger (D-07) and McClellan (D-04) this week.