As of April 2026, the National Credit Union Administration (NCUA) is actively pursuing a massive, multi-round Deregulation Project to review, revise, or eliminate regulations deemed obsolete, duplicative, or overly burdensome. Driven by Executive Order 14192, this project aims to enhance credit union flexibility, reduce compliance costs, and focus on safety and soundness.
Why This Matters for Credit Union Leadership
The NCUA has invited industry feedback through public comment periods. While not every proposal will affect every credit union, the overall direction is worth noting.
For management teams and boards, the NCUA’s Deregulation Project presents an opportunity to stay informed and evaluate whether upcoming changes could meaningfully impact policies, procedures, governance practices, or examination focus. In some cases, proposed changes may reduce administrative burden; in others, they may shift how compliance responsibilities are documented or communicated.
NCUA Deregulation Project – Official Resources
For those who would like to review the original NCUA announcements and proposed rule changes in more detail, the following resources provide additional context and background: https://ncua.gov/news/deregulation-project
Highlights from the Deregulation Project
To date, the NCUA has announced (9) nine rounds of proposed changes:
2025 Deregulation Rounds
- Round 1 (December 2025): Governance and Audits
- Removed requirements for an Asset and Liability Management Committee (ALCO) to include a board member.
- Streamlined Supervisory Committee audit requirements to eliminate redundant provisions.
- Converted prescriptive member information security guidelines into nonbinding guidance.
- Round 2 (December 2025): Reporting and Operations
- Proposed removing duplicative requirements for lending to other credit unions.
- Simplified catastrophic act reporting and advertising accuracy rules.
- Revised surety and guarantor rules to provide boards more flexibility.
2026 Deregulation Rounds
- Round 3 (January 2026): Duplication and Outdated Guidance
- Proposed removing the nondiscrimination rule (Part 701.31) because it overlaps with broader federal laws like the Fair Housing Act.
- Rescinded redundant Interpretive Ruling and Policy Statements (IRPS) on community chartering and corporate credit unions.
- Round 4 (January 2026): Funding and Borrowing
- Proposed eliminating written plans for public unit and nonmember shares when they exceed 70% of capital.
- Deferred borrowing authority limits for state-chartered credit unions to their respective state laws.
- Round 5 (February 2026): Mergers and Conversions
- Proposed removing mandatory posting of member comments on mergers on the NCUA website.
- Eliminated prescriptive formatting requirements (e.g., specific font sizes) for insurance conversion disclosures.
- Round 6 (February 2026): Loan Policies and Compensation
- Proposed giving boards more authority to set limits on the sale of eligible obligations.
- Removed duplicative conflict-of-interest provisions regarding payments and compensation.
- Round 7 (March 2026): Records Management
- Proposed removing Appendix A and B of Part 749, giving boards more discretion over record retention and destruction.
- Clarified that records preservation logs can be maintained in electronic formats.
- Round 8 (March 2026): Indirect Auto Lending
- Proposed removing limitations on third-party servicing of indirect vehicle loans to reduce administrative complexity.
- Round 9 (April 2026): Field of Membership (FOM)
- Proposed removing the automatic disqualification of association groups that require a product purchase for membership, moving to a case-by-case evaluation.
