{"id":6116,"date":"2026-04-17T09:00:29","date_gmt":"2026-04-17T14:00:29","guid":{"rendered":"https:\/\/www.ncultheaffiliate.com\/?p=6116"},"modified":"2026-04-17T09:00:29","modified_gmt":"2026-04-17T14:00:29","slug":"ncua-deregulation-update","status":"publish","type":"post","link":"https:\/\/www.ncultheaffiliate.com\/?p=6116","title":{"rendered":"NCUA Deregulation Update"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;0px|||||&#8221;][et_pb_row _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;0px|||||&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221;][et_pb_text _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221;]<\/p>\n<p>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.<img loading=\"lazy\" class=\"wp-image-2906  alignright\" src=\"http:\/\/www.ncultheaffiliate.com\/wp-content\/uploads\/2020\/06\/ncua_logo_21644.jpg\" alt=\"\" width=\"145\" height=\"109\" srcset=\"https:\/\/www.ncultheaffiliate.com\/wp-content\/uploads\/2020\/06\/ncua_logo_21644.jpg 320w, https:\/\/www.ncultheaffiliate.com\/wp-content\/uploads\/2020\/06\/ncua_logo_21644-300x225.jpg 300w\" sizes=\"(max-width: 145px) 100vw, 145px\" \/><\/p>\n<p><strong>Why This Matters for Credit Union Leadership<\/strong><\/p>\n<p>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.<\/p>\n<p>For management teams and boards, the NCUA\u2019s 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.<\/p>\n<p><strong>NCUA Deregulation Project \u2013 Official Resources<\/strong><\/p>\n<p>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: <a href=\"https:\/\/ncua.gov\/news\/deregulation-project\">https:\/\/ncua.gov\/news\/deregulation-project<\/a><\/p>\n<p><strong>Highlights from the Deregulation Project<\/strong><\/p>\n<p>To date, the NCUA has announced (9) nine rounds of proposed changes:<\/p>\n<p><strong>2025 Deregulation Rounds\u00a0<\/strong><\/p>\n<ul>\n<li><strong>Round 1 (December 2025):<\/strong>\u00a0Governance and Audits\n<ul>\n<li>Removed requirements for an\u00a0Asset and Liability Management Committee (ALCO)\u00a0to include a board member.<\/li>\n<li>Streamlined\u00a0Supervisory Committee audit\u00a0requirements to eliminate redundant provisions.<\/li>\n<li>Converted prescriptive member information security guidelines into nonbinding guidance.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Round 2 (December 2025):<\/strong>\u00a0Reporting and Operations\n<ul>\n<li>Proposed removing\u00a0duplicative requirements\u00a0for lending to other credit unions.<\/li>\n<li>Simplified\u00a0catastrophic act reporting\u00a0and advertising accuracy rules.<\/li>\n<li>Revised surety and guarantor rules to provide boards more flexibility.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>2026 Deregulation Rounds\u00a0<\/strong><\/p>\n<ul>\n<li><strong>Round 3 (January 2026):<\/strong>\u00a0Duplication and Outdated Guidance\n<ul>\n<li>Proposed removing the\u00a0nondiscrimination rule (Part 701.31)\u00a0because it overlaps with broader federal laws like the Fair Housing Act.<\/li>\n<li>Rescinded redundant\u00a0Interpretive Ruling and Policy Statements (IRPS)\u00a0on community chartering and corporate credit unions.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Round 4 (January 2026):<\/strong>\u00a0Funding and Borrowing\n<ul>\n<li>Proposed eliminating written plans for\u00a0<a href=\"https:\/\/ncua.gov\/newsroom\/press-release\/2026\/ncua-announces-fourth-round-deregulation-proposals\">public unit and nonmember shares<\/a>\u00a0when they exceed 70% of capital.<\/li>\n<li>Deferred borrowing authority limits for\u00a0state-chartered credit unions\u00a0to their respective state laws.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Round 5 (February 2026):<\/strong>\u00a0Mergers and Conversions\n<ul>\n<li>Proposed removing mandatory posting of\u00a0<a href=\"https:\/\/ncua.gov\/news\/deregulation-project\">member comments on mergers<\/a>\u00a0on the NCUA website.<\/li>\n<li>Eliminated\u00a0prescriptive formatting requirements\u00a0(e.g., specific font sizes) for insurance conversion disclosures.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Round 6 (February 2026):<\/strong>\u00a0Loan Policies and Compensation\n<ul>\n<li>Proposed giving boards more authority to set limits on the\u00a0sale of eligible obligations.<\/li>\n<li>Removed\u00a0duplicative conflict-of-interest provisions\u00a0regarding payments and compensation.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Round 7 (March 2026):<\/strong>\u00a0Records Management\n<ul>\n<li>Proposed removing\u00a0Appendix A and B of Part 749, giving boards more discretion over record retention and destruction.<\/li>\n<li>Clarified that\u00a0records preservation logs\u00a0can be maintained in electronic formats.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Round 8 (March 2026):<\/strong>\u00a0Indirect Auto Lending\n<ul>\n<li>Proposed removing\u00a0limitations on third-party servicing\u00a0of indirect vehicle loans to reduce administrative complexity.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Round 9 (April 2026):<\/strong>\u00a0Field of Membership (FOM)\n<ul>\n<li>Proposed removing the automatic disqualification of association groups that require a product purchase for membership, moving to a case-by-case evaluation.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n  ","protected":false},"excerpt":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;0px|||||&#8221;][et_pb_row _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;0px|||||&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221;][et_pb_text _builder_version=&#8221;4.9.4&#8243; _module_preset=&#8221;default&#8221;] 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 [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/posts\/6116"}],"collection":[{"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6116"}],"version-history":[{"count":0,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/posts\/6116\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}