NCUA Vice Chairman Kyle S. Hauptman during a meeting of the NCUA Board.
As Prepared for Delivery on October 19, 2023
Thank you, Pamela, for your presentation. I appreciate the work you and the team did to coordinate with the FDIC.
I am pleased to see this proposed rule. Credit unions are not immune to the challenges of hiring in this economy. Persons who have paid their debt to society or whose offenses are relatively minor represent a vast array of potential workers. The proposed rule gives greater latitude for a credit union to hire an individual with a record or allow them to serve on the board of directors. It carves out lesser offenses and expands on exceptions. It narrows the instances where a credit union needs to apply to the NCUA to hire a candidate.
Credit unions were one of the original answers to financial inclusion, so it is appropriate that we carefully consider who might be excluded from serving either as an employee or board member. From the employee side of the equation, it gives more people the opportunity to become gainfully employed in a movement where inclusion is at the core of its existence. That’s good for them, their families, and society.
The rule also reduces regulatory burden by shrinking the instances when a credit union must apply to the NCUA to hire a person with a record of certain covered offenses. The reporting requirements and deadlines contemplated in this proposed rule are consistent with current policy, so there are no additional compliance and paperwork requirements. This also reduces the resources needed to investigate those applications that still need to come to the Agency for approval.
Further, the availability of forms and instructions related to consent applications on the Agency’s website makes it easier for potential candidates to find out if they qualify for employment without the credit union having to submit an application. However, applicants must still qualify for fidelity bond coverage.
I will be supporting this proposed rule and look forward to reading the comments from stakeholders.
Mr. Chairman, that concludes my remarks. I have a couple of questions.