NCUA Chairman Hauptman On Regulation by Enforcement

www.marktreichel.com

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Hello, this is Samantha Shares. This episode covers Chairman Hauptman on Regulation by Enforcement.

 

The following is an audio version of that document. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel dot com. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A.

 

And now the document.

 

Chairman Hauptman On Regulation by Enforcement

 

ALEXANDRIA, VA, October 1, 2025 – The National Credit Union Administration Chairman Kyle S. Hauptman issued the following statement about N C U A’s No Regulation-by-Enforcement Policy:

 

Today’s policy statement fulfills a goal listed back in January upon being designated as Chairman: “Codifying our procedures to protect Americans from regulation-by-enforcement. For example, no enforcement action should ever set―or even clarify― policy. In America and other free societies, the sequence is: set speed limits, then give speeding tickets (no one has any obligation to be aware of someone else’s ticket).”

 

To be clear, this agency has a good track record regarding regulation-by-enforcement, so this statement shouldn’t be viewed as being the result of any recent N C U A actions. After all, it’s counterproductive for a deposit insurer to engage in regulation-by-enforcement against the same institutions we insure. That said, it’s important to put in writing a policy of fairness, whereby government employees give regulated credit unions the same due-process that they, under civil servant protections, rightly expect in their own careers. Today’s statement is born partly of my frustrating interactions with regulators, both in my time on Capitol Hill and in the private sector. I know that millions of others share the frustration of being told ‘if you want to figure out the rules, look at our prior settlements.’ Americans expect better from their government, including financial regulators.

 

No Regulation-by-Enforcement Policy Statement

 

Regulation-by-enforcement is unethical and not permitted at N C U A.

 

Enforcement actions shall only occur in the case of clear and significant violations of law or regulation. Therefore, no person or entity regulated by N C U A has any obligation to be aware of any prior N C U A enforcement actions because no new policy is ever set via an enforcement action.

 

No enforcement action, nor the timing of enforcement actions, shall be motivated by trying to boost the agency’s enforcement totals or get the enforcement done in a certain fiscal or calendar year.

 

Enforcement is a necessary tool, but is not, by itself, an accomplishment or a metric of success. Our goal is for credit unions to operate safely and soundly and in compliance with applicable laws and regulations. We will seek to remedy any such problems whenever we can without needing to use enforcement action. The goal is to resolve any problems, not to issue press releases, rack up enforcement numbers or improve the post-N C U A career options of agency staff. We don’t set “speed traps” to increase enforcement totals.

 

A guiding principle here is avoiding double-standards. In their own careers, civil servants are protected against arbitrarily poor performance reviews, allegations of misconduct, wrongful termination and other things that could harm their career path. In turn, government employees must extend the same due process protections to those they regulate.

 

If N C U A finds a harmful practice that threatens our mission or is otherwise injurious or abusive, and it is not currently addressed by law or regulation, then our next step is to consider rulemaking or other remedy. As is the norm in America, the sequence of events at N C U A is: one, publish rules, two, then and only then, enforce them.

 

This concludes the document.

 

If your credit union could use assistance with your exam, reach out to Mark Treichel on LinkedIn, or at Mark Treichel dot com. This is Samantha Shares and we thank you for listening.

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What is Credit Union Regulatory Guidance Including: NCUA, CFPB, FDIC, OCC, FFIEC?

This podcast provides you the ability to listen to new regulatory guidance issued by the National Credit Union Administration, and occasionally the F D I C, the O C C, the F F I E C, or the C F P B. We will focus on new and material agency guidance, and historically important and still active guidance from past years that NCUA cites in examinations or conversations. This podcast is educational only and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated. We also have another podcast called With Flying Colors where we provide tips for achieving success with the N C U A examination process and discuss hot topics that impact your credit union.

Samantha: Hello, this is Samantha Shares.

This episode covers Chairman Hauptman
on Regulation by Enforcement.

The following is an audio
version of that document.

This podcast is educational
and is not legal advice.

We are sponsored by Credit Union
Exam Solutions Incorporated, whose

team has over two hundred and
forty years of National Credit

Union Administration experience.

We assist our clients with N C
U A so they save time and money.

If you are worried about a recent,
upcoming or in process N C U A

examination, reach out to learn how they
can assist at Mark Treichel dot com.

Also check out our other podcast called
With Flying Colors where we provide tips

on how to achieve success with N C U A.

And now the document.

Chairman Hauptman On
Regulation by Enforcement

ALEXANDRIA, VA, October 1,
2025 – The National Credit Union

Administration Chairman Kyle S.

Hauptman issued the following
statement about N C U A’s No

Regulation-by-Enforcement Policy:

Today’s policy statement fulfills a
goal listed back in January upon being

designated as Chairman: “Codifying
our procedures to protect Americans

from regulation-by-enforcement.

For example, no enforcement action
should ever set―or even clarify― policy.

In America and other free societies,
the sequence is: set speed limits,

then give speeding tickets (no
one has any obligation to be

aware of someone else’s ticket).”

To be clear, this agency has
a good track record regarding

regulation-by-enforcement, so this
statement shouldn’t be viewed as being

the result of any recent N C U A actions.

After all, it’s counterproductive
for a deposit insurer to engage in

regulation-by-enforcement against
the same institutions we insure.

That said, it’s important to put in
writing a policy of fairness, whereby

government employees give regulated
credit unions the same due-process that

they, under civil servant protections,
rightly expect in their own careers.

Today’s statement is born partly
of my frustrating interactions with

regulators, both in my time on Capitol
Hill and in the private sector.

I know that millions of others share
the frustration of being told ‘if

you want to figure out the rules,
look at our prior settlements.’

Americans expect better from
their government, including

financial regulators.

No Regulation-by-Enforcement
Policy Statement

Regulation-by-enforcement is unethical
and not permitted at N C U A.

Enforcement actions shall only occur
in the case of clear and significant

violations of law or regulation.

Therefore, no person or entity regulated
by N C U A has any obligation to be

aware of any prior N C U A enforcement
actions because no new policy is

ever set via an enforcement action.

No enforcement action, nor the timing of
enforcement actions, shall be motivated by

trying to boost the agency’s enforcement
totals or get the enforcement done

in a certain fiscal or calendar year.

Enforcement is a necessary
tool, but is not, by itself, an

accomplishment or a metric of success.

Our goal is for credit unions to operate
safely and soundly and in compliance

with applicable laws and regulations.

We will seek to remedy any such
problems whenever we can without

needing to use enforcement action.

The goal is to resolve any problems,
not to issue press releases, rack up

enforcement numbers or improve the post-N
C U A career options of agency staff.

We don’t set “speed traps” to
increase enforcement totals.

A guiding principle here is
avoiding double-standards.

In their own careers, civil servants
are protected against arbitrarily poor

performance reviews, allegations of
misconduct, wrongful termination and other

things that could harm their career path.

In turn, government employees
must extend the same due process

protections to those they regulate.

If N C U A finds a harmful practice
that threatens our mission or is

otherwise injurious or abusive, and it
is not currently addressed by law or

regulation, then our next step is to
consider rulemaking or other remedy.

As is the norm in America, the sequence of
events at N C U A is: one, publish rules,

two, then and only then, enforce them.

This concludes the document.

If your credit union could use assistance
with your exam, reach out to Mark Treichel

on LinkedIn, or at Mark Treichel dot com.

This is Samantha Shares and
we thank you for listening.