Warren Presses NCUA Chair Hauptman On Proposals To Weaken Credit Unions

"(T)he Deregulation Project is a far-reaching initiative to reverse existing credit union regulations that have long protected the credit union system against financial shocks and ensured the proper stewardship of its members' funds."

Text of Letter (PDF)

Washington, D.C. - Today, U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, sent a letter to Kyle Hauptman, Chairman of the Board at the National Credit Union Administration (NCUA), expressing her concerns about the NCUA's "Deregulation Project," a far-reaching initiative to reverse existing credit union regulations that have long protected the credit union system against financial shocks and ensured the proper stewardship of its members' funds.

Since December 2025, the NCUA has issued eleven rounds of proposed regulatory changes. Some of the most troubling proposals include

• Eliminating the segregated deposit and collateral requirements, which require credit unions to have adequate collateral when a credit union acts as a guarantor for a member.
• Eliminating nondiscrimination requirements for credit unions stemming from the Fair Housing Act and the Equal Credit Opportunity Act.
• Eliminating the requirements on how disclosures related to a proposed merger between credit unions must be communicated to their members.
• Eliminating the requirement for federally insured credit unions to give their members at least 30 days notice if it plans to end supplemental share insurance coverage.
• Removing the requirement that new Board members obtain post-election training in finance and accounting.

"Your agency is crucially responsible for the safekeeping of the roughly $2.5 trillion in assets in the credit union system and the more than 145 million members credit unions serve," wrote Ranking Member Warren. "It is critical that the NCUA maintain strong supervisory and regulatory safeguards to ensure the safety and soundness of the credit union system."

The Ranking Member also raised questions about whether the NCUA has authority to implement the Deregulation Project while Hauptman serves as the NCUA's sole board member after President Trump fired NCUA board members Todd Harper and Tanya Otsuka in April 2025. Federal law states that the NCUA Board "shall consist of three members, who are broadly representative of the public interest, appointed by the President, by and with the advice and consent of the Senate," and NCUA's regulations make clear that "(t)he agreement of at least two of the three Board members is required for any action by the Board."

Ranking Member Warren requested that Chairman Hauptman "provide a briefing on the NCUA's deregulation project and respond to the following questions by July 13, 2026."

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