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Promising that the NCUA will not engage in "regulation by enforcement," NCUA Chairman Kyle Hauptman has sent a letter to credit unions outlining his supervisory priorities for 2026.
"NCUA is dedicated to supporting credit unions, developing right-sized regulations and policies that safely advance innovation within the credit union system, and protecting member deposits and the Share Insurance Fund through productive, streamlined credit union supervision," Hauptman wrote in his letter.
Hauptman reiterated that these priorities reflect the agency's goal of supporting a safe, sound, and resilient credit union system without imposing unnecessary regulatory burden.
It should be noted that Hauptman, a Republican, currently is the only member of the NCUA board, since President Trump has fired two Democratic members of the board, Todd Harper and Tanya Otsuka. The two have sued the agency, saying they were not fired for cause and that case is pending in federal court.
NCUA "will continue conducting defined scope exams in most federal credit unions with assets of $50 million or less, and risk-focused exam procedures for all other credit unions," according to the agency.
Officials added that NCUA examiners are expected to shift the areas of supervisory focus based on a credit union's risk profile when appropriate.
Examiners will concentrate on areas that pose the greatest risk to credit union members, the credit union system and the NCUA's Share Insurance Fund, the agency said.
The areas of focus for examiners include:
- Balance sheet management and lending. Loan performance is at its weakest point in more than a decade, so examiners will review underwriting standards, credit risk management practices and liquidity planning.
- Operational and compliance risk. "Examiners will conduct their reviews with a continued emphasis on fraud prevention, payment systems security, and compliance with consumer financial protection laws," the agency said.
- Efficiency and Innovation: The agency will implement streamlined examination processes and will align the examinations with recent legislative and executive directives.
The letter closes by reminding federal credit unions that they may record their final exit meetings or joint conferences for training and compliance purposes, provided the recording is shared with NCUA, and by encouraging state-chartered credit unions to check with their regulators before recording meetings.
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