Senate confirms Kyle Hauptman to NCUA board

The Senate on Wednesday voted 56 to 39 to confirm Kyle Hauptman to the National Credit Union Administration board, putting an end to speculation over whether his nomination would move forward before the end of the lame-duck session.

Hauptman, President Trump’s final appointee to the panel, will fill the expired seat of board member Mark McWatters, who joined the agency in 2014. McWatters’s term ended in August 2019, and he initially vowed to stay on until his successor was confirmed but he abruptly resigned on Nov. 20 after clashing with Hood over the regulator’s proposed budget. Sources said that McWatters was given the option of resigning or being removed by the White House.

Hauptman’s confirmation ensures Republicans will hold a majority position at NCUA until at least 2023, when Rodney Hood’s term expires. President-elect Joe Biden will have a chance to nominate a Democrat to the board when Todd Harper’s term ends in April. But Harper is currently the board’s only Democrat so that appointment wouldn’t change the political makeup of the board and Republicans would continue to hold a 2-1 majority.

Biden is likely to elevate Harper to the chairmanship after his inauguration, but he could struggle to move forward policies that don’t fit with a Republican, deregulatory perspective. Harper pushed last year for the board to increase its role in consumer protection activities, but that proposal was voted down. Any similar proposals would likely face the same fate now that the board’s make-up is set.

Hauptman faced criticism during his confirmation hearing for his qualifications to the board, having worked in the financial services sector but not specifically within the credit union movement. A former trader with Lehman Brothers, Hauptman is currently an economic policy advisor for Sen. Tom Cotton, R-Ark., and staff director of the Senate Banking Committee’s subcommittee on economic policy.

Still, industry groups on Wednesday cheered Hauptman’s confirmation.

“[The National Association of Federally-Insured Credit Unions] congratulates Kyle Hauptman on being confirmed to the NCUA board,” President and CEO Dan Berger said in a press release. “We look forward to continuing to work with Mr. Hauptman to ensure credit unions have all the tools necessary to serve their more than 122 million members and continue to grow. We are confident the board will continue to be an effective and independent regulator for the industry.”

Hauptman is expected to be available for NCUA’s Dec. 17 board meeting, which would likely include a vote on the agency’s proposed budget. It’s expected that Hauptman will vote with Hood in favor of the proposal.

Jackie Stewart contributed to this report.