ALEXANDRIA, Va.–The Trump administration has elevated NCUA Board Member Mark McWatters to acting chairman, replacing Democrat Rick Metsger, who will remain on the board.
The change was expected following Donald Trump’s win in the presidential election. The board remains one member short, and while the timeline remains unknown, the administration will eventually appoint another Republican to the board. There has been some speculation that former NCUA board member and chairman, Michael Fryzel, now an attorney practicing in Chicago, could be reappointed.
McWatters joined the NCUA board in August of 2014 after being nominated by President Obama. He has been an outspoken proponent of bringing what he describes on NCUA’s website as a “market-oriented, transparent and fully accountable regulatory perspective to the NCUA Board.”
"I am deeply honored that President Trump has asked me to serve as Acting Chairman of NCUA,” McWatters said in a statement. “I look forward to continuing to work with Board Member Metsger to facilitate the ability of credit unions to better serve their members. I remain committed to bringing true regulatory relief to the extent permitted by applicable law and to protecting the deposits of the more than 106 million Americans who rely on federally insured credit unions for their financial needs, all in a manner that ensures the safety and soundness of the National Credit Union Share Insurance Fund.”
McWatters is an attorney who has taught at Southern Methodist University's Dedman School of Law, and also a certified public accountant. He previously was a member of the Troubled Asset Relief Program (TARP) Congressional Oversight Panel.
The appointment as NCUA chairman should put an end to discussion around a move to the board of the Export/Import Bank, to which McWatters had also been nominated by former President Barack Obama.
Metsger was named chairman in May of 2016 by President Obama after first joining the board in August of 2013. As Metsger was appointed to fill out the term of former NCUA board member Gigi Hyland, who now leads the National Credit Union Foundation, his term expires in 2017. He was elevated to chairman after former chair Debbie Matz stepped down from the NCUA board.
Prior to joining the NCUA board, Metsger had owned his own strategic communications consulting firm, had served as a member of the Oregon Senate, and from 1993 to 2001 served on the board of directors of the then Portland Teachers Credit Union.
“I congratulate my colleague, Mark McWatters, on his designation, and I expect our strong working relationship to continue,” Metsger said in a statement. “He and I have mutual respect for, and trust in, one another, and I think we have accomplished a good deal in the past nine months. Our commitment to working together for a safe and sound credit union system remains the same.”
In response to the announcement, CUNA CEO Jim Nussle said, “CUNA and the Leagues congratulate J. Mark McWatters on his appointment by President Trump as Acting Chairman of the NCUA board. We look forward to working with Chairman McWatters on his agenda of improving the efficiency of the agency and increasing flexibility for well-managed credit unions while maintaining principles of safety and soundness, and we thank the President for prioritizing this appointment. We further welcome a continuation of the collegial and professional approach taken by him and Mr. Metsger over the past year that has resulted in significant positive changes at the agency.”
NASCUS president Lucy Ito stated that McWatters is a "welcome choice" for the state system to lead the NCUA board.
"He has displayed an intricate knowledge of the law and regulations affecting credit unions, as well as the ever-more complex accounting rules they must follow," said Ito. "During the period when Rick Metsger was chairman, he worked closely with him in a show of solidarity and cooperation, that we think benefited the entire credit union system. Our thanks to former Chairman Metsger for his leadership of the agency – and we look forward to continue working with him as a continuing member of the board."
NAFCU President and CEO Dan Berger phoned McWatters after hearing the news to congratulate him.
“We congratulate Acting Chairman McWatters and look forward to continuing to work with him and Board Member Rick Metsger to ensure a positive regulatory environment for credit unions,” Berger said.