White House elevates Todd Harper to NCUA chairman

The White House on Monday elevated Todd Harper to chairman of the National Credit Union Administration board.

Harper, a Democrat who joined the NCUA board in 2019, had long been expected to be appointed chairman once President Joe Biden took office. He succeeds Rodney Hood, who has been chairman since the pair were confirmed together. Hood will continue to serve as a board member, alongside Vice Chairman Kyle Hauptman. Harper's first board meeting in charge at the agency is expected to be Feb. 18.

In a press release, Harper pledged to prioritize “open engagement” and “win-win compromises” as he leads the agency.

“The credit union system now sits at the intersection of several crossroads, and the agency faces many decisions ahead related to the economic fallout of the COVID-19 pandemic and the need to advance economic equality an d justice,” he said. “As NCUA board chairman, I will continue to focus on four policy priorities: capital and liquidity, consumer financial protection, cybersecurity, and diversity, equity, and economic inclusion. Each of these priorities are vital in responding to current economic and marketplace realities.”

Since joining the board, Harper has been an advocate for advancing NCUA’s role in consumer protections, and he is widely expected to focus on that as chairman. But his ability to successfully get any such initiatives across the finish line could be limited. The board’s most recent budget included a nominal increase for additional consumer protection activities, but in agency meetings Hood characterized that largely as a token of goodwill. Industry groups have also said there is little need for NCUA to do more in that arena, and would likely push back strongly against new regulations. Beyond that, Harper is outvoted politically on the board, since Hood and Hauptman are both Republicans.

The new chairman has also suggested in the past that NCUA should move ahead with implementing its controversial risk-based capital rule rather than continuing to tweak the rules or which institutions they apply to, offering the rationale that other issues, such as concentration risk, pose a greater threat to the National Credit Union Share Insurance Fund.

When nominated in 2019, Harper was selected to fill the seat vacated by former Chairman Debbie Matz. His term expires in April, though board members regularly stay on at the agency until their successors have been confirmed. Another seat on the board will not become available until Hood’s term expires in August of 2023.

Harper has an extensive history with the regulator, having previously served as director of NCUA’s Office of Public and Congressional Affairs and being appointed chief policy advisor to Matz and former Chairman Rick Metsger. Harper is the first NCUA staffer to become a board member or chairman.

“Todd is uniquely qualified not only to be NCUA chairman but to be an extraordinary chairman. In addition to being incredibly smart, he brings a vast wealth of knowledge about financial services and legislative processes,” Matz said in an emailed statement. “As a result of his tenure at NCUA, as a senior advisor and then board member, he will hit the ground running in making NCUA once again an employer of choice, ensuring consumer protections and in keeping the credit union system safe and sound.”

Mark McWatters, who served alongside Harper until he was forced out of the agency last fall, offered his congratulations, and said: “I had the pleasure to work with Todd for over six years in a collegial, collaborative and bipartisan manner to ensure the safety and soundness and consumer protection mission of the agency. I wish him the very best during his tenure."

Michael Fryzel, another former chairman, called Harper’s appointment “a smart and sound decision” by the Biden administration.

He added: “His experience and knowledge of credit unions will enable him to pursue a progressive agenda centered on safety and soundness, consumer protection, member access and credit union growth. In addition he has the ability and willingness to work both sides of the aisle to achieve consensus, cooperation and collaboration.”

Trade groups serving the industry also welcomed his appointment and said they looked forward to working with him.

Before joining NCUA, Harper worked as a staff director in the U.S. House of Representatives and was legislative director to former Rep. Paul Kanjorski, D-Pa. He holds an undergraduate degree from Indiana University and a graduate degree in public policy from the Kennedy School of Government at Harvard University.