ALEXANDRIA, Va.—NCUA unanimously approved its 2025 Annual Performance Plan Thursday, noting it will include a metric requiring the board to adopt a framework to begin implementation of an enhanced consumer compliance program for complex credit unions.
Also, according to the plan, NCUA will begin work on reassessing the methodology used to establish the normal operating level for the Share Insurance Fund to respond to industry changes, and will add a provision to ensure the updated Minority Depository Institution Preservation Program will be included as a metric.
The first NCUA board meeting of 2025 also marked Todd Harper’s last as chairman, with President Donald Trump expected to tap Vice Chair Kyle Hauptman to head the agency.
Harper stressed that in 2025, NCUA will continue to address consumer financial protection “hand-in-glove” with safety and soundness.
“Credit union members deserve no less,” Harper said. “Consumer financial protection is not only a core part of the NCUA’s mission, but the agency is also statutorily required to supervise and enforce compliance with federal consumer financial protection laws. And, consumer financial protection is specifically included in the agency’s strategic vision. That’s why I’m pleased that this plan includes a metric requiring the board to adopt a framework to begin implementation of an enhanced consumer compliance program for complex credit unions.”
'Critical Mission'
The plan, Harper continued, also charges NCUA with enhancing consumer access to safe, fair, and affordable financial products and services—a “critical mission” of the agency.
“This work includes meeting the needs of underserved communities, ensuring that the agency has the expertise to understand the extension of credit related to climate events and the use of artificial intelligence, providing resources to aid small credit unions and minority depository institutions, and supporting the development of new federal credit unions, including the formation of more minority depository institutions,” Harper said.
With credit unions growing in asset size and operational complexity, Harper pointed to two other important matters.
“First, this plan notes the board will begin work on reassessing the methodology used to establish the normal operating level for the Share Insurance Fund to respond to those industry changes. In my view, it’s better to set aside sufficient reserves in good economic environments than it is to charge Share Insurance Fund premiums during economic downturns,” Harper explained. “Second, this plan discusses the need for the agency to continue its efforts to enhance the enterprise risk-management practices at the largest credit unions. We especially need to ensure the orderly resolution of large institutions with the board adoption, as appropriate, and agency implementation of new procedures, processes, and protections in the year ahead.”
CU Feedback Necessary
Hauptman stressed that feedback from credit unions on the agency’s performance is important, welcomed and needed.
“The continued focus on quantifiable outputs and outcomes is yielding positive results,” Hauptman said. “Performance indicators, such as 1.2.2 regarding the post examination survey, communicates the board’s and management’s expectations. This performance indicator tells NCUA staff and credit unions that the agency values collaboration, the narrative, and timely delivery of examination reports. Staff achieved a 94% positive response rating from credit unions on a goal of 90%. This was in a year with new and difficult challenges for credit unions and examiners.”
Hauptman emphasized that with all customer-service surveys, much of the value comes from the questions, not just the answers.
“And then, there’s the fact the NCUA does the survey in the first place. In this era, where we constantly give and get feedback via our phones and computers, people notice when government agencies only have a poorly-advertised ombudsman. Those agencies aren’t taking the basic steps to ensure quality control, so I appreciate this aspect of today’s plan,” Hauptman said.
Hauptman pointed out that credit unions that have the opportunity to record their exit meeting but decide not to do so are “handicapping” themselves.
“It’s not about bad behavior or a testy exam, although that could occasionally be one benefit,” he said. “Recording just provides valuable information for new management and new examiners. Plus, transcripts are automated these days. I assure any credit union that a transcript of your exit meeting will be at least as valuable as some of the thousands of documents saved on your various systems. These recordings and transcripts can be a godsend for examiners as well.”