ALEXANDRIA, Va.–NCUA has a new chairman. President Trump has designated Rodney E. Hood as the 11th chairman of the agency, while Todd Harper has been sworn in as a board member. The addition of the two new board members marks the first time since April of 2016 that the NCUA board has been at its full complement of three members. It also marks the first time two new board members have previously worked at NCUA.
In his last official action as NCUA chairman, J. Mark McWatters administered the oath of office to Hood, at NCUA’s headquarters. McWatters will remain with NCUA on the board with a term scheduled to expire on Aug. 2 of this year.
“It is an honor to have been nominated by President Trump, confirmed by the U.S. Senate, and sworn in by Chairman McWatters to serve as the eleventh NCUA chairman,” said Hood. “I look forward to leading the agency and focusing on the safety and soundness of America’s credit unions as they operate in today's ever-changing marketplace. As President Trump’s pro-growth economic agenda seeks to empower individuals and communities across the nation, America’s credit unions are on the frontline of providing affordable access and opportunity to the financial system.
Hood officially replaces Rick Metsger on the board. Metsger's term officially expired in August 2017 but he had said he would continue to serve until a replacement was named. Harper fills the seat on the board that had been vacant.
“Over the next four years, I will be especially honored to lead the talented and professional NCUA team while doing my level best to ensure that they have the necessary resources to respond nimbly to today’s market risks and emerging issues,” Hood continued. “As chairman, I look forward to enhancing and modernizing the federal credit union charter, addressing the issues of capital reform and cyber security, creating opportunities for credit unions to serve vulnerable communities, and reducing regulatory burdens.”
Second Term on Board
This is Hood’s second term on the NCUA board, having previously served from 2005-2010, including as vice chairman and having originally been nominated by President Obama. Hood’s term runs through August 2, 2023.
“I look forward to working with Mr. Hood in continuing to pursue an agenda of safe and sound regulatory reform for the credit union community, upon his assuming the Chairmanship of the NCUA,” McWatters said. “I thank President Trump for the honor of serving as Chair for the past two years and congratulate Mr. Hood on his designation. Mr. Hood brings a wealth of financial and credit union experience to the position having previously served on the board and will do an outstanding job as Chairman.”
Hood has most recently served as a corporate responsibility manager for JPMorgan Chase, managing national partnerships with non-profit organizations promoting financial inclusion and shared prosperity for underserved communities.
Hood has also previously served as associate administrator of the Rural Housing Service at the U.S. Department of Agriculture, and as a member of the Board of Governors for the University of North Carolina. Before public service, Mr. Hood held management positions in retail finance, commercial banking, affordable housing and community development at G.E. Capital, Bank of America, Wells Fargo and North Carolina Mutual Life Insurance Company.
Hood holds a bachelor’s degree in business, communications, and political science from the University of North Carolina at Chapel Hill.
Harper is Sworn In
Separately, Todd M. Harper has also taken the oath of office, becoming the 23rd member of the board in NCUA's history.
“My priorities will be to safeguard the safety and soundness of federally insured credit unions, preserve the integrity of the credit union industry in a continually evolving and increasingly complex marketplace, and protect taxpayers and credit union members from losses to the Share Insurance Fund,” Harper said immediately after getting sworn in.
Like Hood, McWatters delivered the oath of office to Harper at the agency’s Alexandria, Virginia, central office.
During his tenure, Harper said he plans to focus on the issues of capital, liquidity, and cybersecurity and will also prioritize the agency’s consumer protection duties and access to affordable credit for the unbanked and underserved.
“By law, the mission of the credit union system is to promote thrift and serve people of modest means. That’s why I am deeply committed to increasing access to financial services for all,” Harper said in a statement. “By providing access to affordable credit, as the Federal Credit Union Act requires, we can also expand our economy, create jobs, and protect American consumers from predatory lending practices. I will focus intently on these issues.”
After nearly a decade of economic growth, Harper also noted that NCUA must prepare for a changing financial environment.
“The recent inversion of the yield curve highlights the real need for the NCUA to prepare for the next recession,” Harper said. “Accordingly, we must ensure that federally insured credit unions and the Share Insurance Fund have the capital needed to withstand the next downturn.”
Like Hood, Harper is also a veteran of NCUA. Prior to his joining the NCUA Board, Harper served as director of the agency’s Office of Public and Congressional Affairs and chief policy advisor to former Chairmen Debbie Matz and Rick Metsger. He also worked for the U.S. House of Representatives as staff director for the Subcommittee on Capital Markets, Insurance, and Government-Sponsored Enterprises and as senior policy advisor, legislative director, and senior legislative assistant to Rep. Paul E. Kanjorski (D-PA).
Harper's term expires in April of 2021.
Harper holds an undergraduate degree in business analytics from Indiana University’s Kelley School of Business and a graduate in public policy from Harvard University’s Kennedy School of Government.
Responses to Appointment
Following Hood's swearing in, NAFCU CEO Dan Berger issued a statement saying, "NAFCU congratulates Rodney Hood on being named NCUA Board chairman, and we look forward to working with him as he leads the agency," said Berger. "With his previous experience serving on the NCUA Board and industry knowledge, Mr. Hood will be an asset to the agency as it tackles some of credit unions' most pressing problems. We also appreciate Mark McWatters' efforts as chairman to bring about regulatory relief for the industry and transparency at the NCUA. We are confident the new NCUA Board will be a strong regulator for credit unions."
Former NCUA chairman and Dollar Associates Principal Dennis Dollar congratulated Hood.
“I was incredibly impressed with Rodney Hood as a board member twelve years ago when he served. He is a tough, but thoughtful regulator who sees the need for effective, but not excessive regulation," said Dollar. "I believe he will leave an even greater legacy as he returns as Chairman -- just as is the outstanding legacy Chairman McWatters has left. Both are men of great integrity, intellect and leadership ability. I look forward to NCUA and the American credit union system being in great hands with Chairman Hood, continuing the strong leadership of former Chairman McWatters.”
Lucy Ito, president of NASCUS, said, "“NASCUS welcomes Rodney Hood as Chairman of the NCUA Board and we are pleased that Chairman Hood noted he will address capital reform, cybersecurity and the strengthening the federal credit union charter. We have long held that it is critical that a supplemental capital rule be in place ahead of the next financial crisis to help protect the National Credit Union Share Insurance Fund from losses. In recent years, states have taken the lead on cybersecurity and charter modernization and NASCUS, as the voice of the state credit union system, looks forward to sharing state experience on regulatory and supervisory innovation to protect credit unions from cyber threats and enhance the federal charter to promote credit union growth and stability.”
CUNA's Statement
In its statement following the swearing in of the two new board members, CUNA saiid it hopes the regulator will commit to prudent stewardship of credit union resources, namely returning the normal operating level of the NCUSIF to 1.3%, down from the current 1.38%.
“We congratulate Rodney Hood on being named NCUA chair and thank former Chair McWatters for his service to credit unions during his time as chairman. We believe it is critical for the effective operation of the agency that the Board be filled by three members,” said CUNA President/CEO Jim Nussle. “As such, we believe a full board will be most able to address the varied issues facing the credit union industry.”
In a letter sent to NCUA, CUNA further expressed interest that the new board members will continue working to extend exam cycles, streamline examinations, modernize the call report and engage in field-of-membership litigation. Areas in which CUNA believes the agency can improve include additional analysis of its risk-based capital rule and a more “proactive and collaborative” strategy to ensure credit unions are prepared for the current expected credit loss standard.