NCUA Chairman Todd M. Harper Statement on the Final Rule as Required by the Fair Hiring in Banking Act

As Prepared for Delivery on September 19, 2024

Thank you, Pamela, for your presentation on this final rule to implement the statutory requirements of the Fair Hiring in Banking Act. The Federal Deposit Insurance Corporation recently completed its work on a similar rulemaking, and it’s good to time our actions to be in tandem with our sister agency.

And, John, thank you for being available to answer questions. I appreciate all of the work by the teams in the Office of General Counsel and the Office of Examination and Insurance in bringing this final rule before the NCUA Board.

Providing career opportunities for those who want nothing more than a second chance — to be responsible, to earn an honest wage, and to pursue a rewarding career in the credit union system — is a tale of redemption and inspiration. It’s also a matter of equity. And, it proves people have the capacity to make amends and change the direction of their lives for the better. The final rule before the Board today aims to do all that, and I will support it.

This rulemaking aligns with the Fair Hiring in Banking Act and defines what criminal offenses are covered by the regulation, such as criminal offenses involving the possession of controlled substances and other minor offenses. It adds a new part 752 to the NCUA’s regulations and codifies the agency’s policies and procedures for consent applications related to prohibition orders. Further, this final rule modifies the NCUA’s rules governing the conditions under which newly chartered or troubled federally insured credit unions must notify the NCUA of proposed changes to their board of directors, committee members, or senior executive teams.

We are also updating our processes to streamline the implementation of this rule. Under the final rule, the heads of the NCUA’s regions and the Office of National Examinations and Supervision will have the authority to approve or disapprove both individual and credit union-sponsored applications meeting certain criteria. And, the NCUA Board will have the power to approve or disapprove individual applications for consent involving more severe criminal offenses and in other high-level security cases it designates. The final rule also ensures due process by laying out an appeals process for consent decisions.

Providing a second chance goes hand in glove with the credit union purpose of advancing economic opportunity for all. We each make mistakes at one time or another, and most of the individuals who will benefit from this rulemaking are those who committed minor offenses, paid their debt to society, and are now seeking to improve their lives by finding gainful employment in an industry that has “people helping people” at the heart of its mission.

Before concluding, I do have two questions that I’ll ask as one. In the rule, we note that after finalizing this rule, the NCUA will issue guidance to credit unions. What will that guidance cover, and how quickly will we issue it?

Thank you for those insights.

In closing, this rule goes a long way in advancing financial inclusion and equity within the credit union system, and I wholeheartedly support it. That concludes my comments. I now recognize Vice Chairman Hauptman.