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Samantha: Hello, this is Samantha Shares.

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This episode covers Chairman Hauptman
on Regulation by Enforcement.

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The following is an audio
version of that document.

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This podcast is educational
and is not legal advice.

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We are sponsored by Credit Union
Exam Solutions Incorporated, whose

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team has over two hundred and
forty years of National Credit

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Union Administration experience.

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

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

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

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

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on how to achieve success with N C U A.

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And now the document.

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Chairman Hauptman On
Regulation by Enforcement

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

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Administration Chairman Kyle S.

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

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Regulation-by-Enforcement Policy:

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

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designated as Chairman: “Codifying
our procedures to protect Americans

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from regulation-by-enforcement.

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

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

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

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aware of someone else’s ticket).”

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

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

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the result of any recent N C U A actions.

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

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

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

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

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

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

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

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

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

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Americans expect better from
their government, including

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financial regulators.

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No Regulation-by-Enforcement
Policy Statement

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

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

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violations of law or regulation.

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

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

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ever set via an enforcement action.

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

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

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in a certain fiscal or calendar year.

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

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accomplishment or a metric of success.

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

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with applicable laws and regulations.

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

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needing to use enforcement action.

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

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

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

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A guiding principle here is
avoiding double-standards.

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

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performance reviews, allegations of
misconduct, wrongful termination and other

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things that could harm their career path.

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In turn, government employees
must extend the same due process

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protections to those they regulate.

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

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

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

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

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two, then and only then, enforce them.

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This concludes the document.

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

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on LinkedIn, or at Mark Treichel dot com.

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This is Samantha Shares and
we thank you for listening.