"As a former policy advisor at the NCUA, Mr. Harper possesses a strong understanding of the credit union industry and its unique mission that puts people over profit," NAFCU President/CEO B. Dan Berger said.

"He is a familiar face to not-for-profit financial cooperatives, which is a very positive development," CUNA President/CEO Jim Nussle said.

Trump nominated Harper, the former NCUA director of public and congressional affairs and chief policy advisor to former Chairwoman Debbie Matz, to serve on the board.

Last month, Trump re-nominated former NCUA board member Rodney Hood for a seat on the board. Trump had nominated Hood last year, but the nomination expired at the end of the 115th Congress.

Sources have said that the two nominations are likely to move through the confirmation process together. Harper is a Democrat and Hood is a Republican. The Senate often pairs nominees from the two political parties to ease the confirmation process.

"With both he and Hood now up for the two available seats, one Democrat and one Republican, the confirmation process may move quickly for both," one source said.

Before joining the NCUA staff, Harper was the staff director of the House Capital Markets, Insurance and Government Sponsored Enterprises subcommittee and legislative director for former Rep. Paul Kanjorski (D-Pa.).

While on the House staff, he contributed to the efforts to enact Dodd-Frank.

NCUA board member Rick Metsger said that experience will be invaluable.

"His leadership in the Congress and at the agency on legislation like the Credit Union Regulatory Improvements Act has, and will continue to, benefit credit union members across the nation," said Metsger, whose term has expired and who is serving on the board until a replacement is confirmed.

Hood, if confirmed, will replace Metsger.

McWatters also praised the choice.

"With nearly 25 years of public service in the areas of financial services regulation and policy, Todd brings a wealth of experience and knowledge that will serve him well as a member of the NCUA Board and as a regulator," he said. "I look forward to having a collaborative and productive working relationship with him, as we work together to maintain the safety and soundness of the federally insured credit union system. I wish him success as he proceeds through the nomination and confirmation process."

Former NCUA Chairman Dennis Dollar said the agency will be well-served by having three board members who understand credit union issues.

"All three have a good working knowledge of the agency and the industry," he said.  "I personally think they will work together quite well, maybe not agreeing all the time – but that is why you have a board, to provide multiple points of view from which should come better policy.  Most NCUA issues are fact-based, not partisan."

The McWatters-Harper relationship will be closely watched, sources said.

McWatters and Harper's former boss, Matz, had a public feud when Matz was chair.

McWatters said Matz was not sufficiently transparent about agency issues, while Matz said McWatters did not spend enough time at the NCUA offices to understand issues.

Harper left the NCUA when McWatters was selected by Trump to serve as acting director.

"The relationship between the Matz and McWatters offices was bad," one source said.

"Obviously, there was a period of considerable tension," another source said, adding that he expects McWatters and Harper to be able to work well together.

Another source agreed.

"It's irrelevant now, unless both of the board members decide to make it [an] issue," the source said. "And that would be a sad mistake for everyone involved."