NCUA’s proposed rule on stablecoin

Status: Comment period closes April 13, 2026

Summary
The NCUA Board (Board) is seeking comment on proposed regulations to implement portions of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). The GENIUS Act charges the NCUA with licensing, regulating, and supervising payment stablecoin issuers that are subsidiaries of federally insured credit unions (FICU subsidiaries). The GENIUS Act also requires the NCUA to issue implementing regulations by July 18th, 2026. This proposed rule proposes regulations to implement the statutorily required process for approval and licensure of permitted payment stablecoin issuers (PPSIs) subject to the NCUA’s jurisdiction. It also proposes regulations limiting FICUs to investing in NCUA-licensed PPSIs. A forthcoming proposal will propose regulations to implement the standards and restrictions imposed by the GENIUS Act on PPSIs.

Link to the full proposal and to comment: https://www.regulations.gov/document/NCUA-2025-1335-0001 

Deregulation proposals – Comments close April 13!

Chartering and Field of Membership for Federal Credit Unions-Interpretive Rulings and Policy Statements

Status: Comment period closes on April 13, 2026

Summary
The NCUA Board proposes to rescind its Interpretative Ruling and Policy Statement 06-1 (IRPS 06-1). Rescinding IRPS 06-1 would ease the compliance burden on Federal credit unions (FCUs) by limiting the number of sources that FCUs must check to ensure compliance with applicable chartering and field of membership (FOM) requirements.

Link to full proposal: https://www.federalregister.gov/public-inspection/2026-02765/chartering-and-field-of-membership-for-federal-credit-unions—interpretive-rulings-and-policy

Simplified Summary
The NCUA Board proposes to rescind its Interpretative Ruling and Policy Statement 06-1 (IRPS 06-1) to limit the number of sources an FCUs must check to ensure compliance with applicable chartering and field of membership (FOM) requirements.

IRPS 06-1 shares similar information about FOM policies and procedures as the Chartering Manual. By rescinding IRPS 06-1, NCUA is eliminating duplicative information that may be confusing or increase compliance burden.

Proposed Changes to Rule

• The Board proposes to rescind IRPS 06-1 because the current FOM requirements are in the Chartering Manual.
• Impact on Credit Unions: This change would eliminate a redundant standard currently listed in more than one area. This would ease the compliance burden on FCUs Federal Credit Unions by limiting the number of sources they must check to ensure compliance with applicable community chartering and FOM requirements.

Mergers of Insured Credit Unions Into Other Credit Unions; Voluntary Termination or Conversion of Insured Status

Status: Comment period closes on April 13, 2026

Summary
The NCUA Board (Board) proposes to amend its regulations governing the voluntary termination of federal share insurance to streamline member communication requirements. This action is necessary to reduce regulatory burden by eliminating overly prescriptive formatting rules for the mandatory disclosure statement that credit unions must provide to members. The intended effect is to simplify compliance and provide credit unions with greater flexibility in designing effective communications, while still ensuring that members receive clear and prominent notice of a proposed termination of federal insurance.

Link to full proposal: https://www.federalregister.gov/public-inspection/2026-02764/mergers-of-insured-credit-unions-into-other-credit-unions-voluntary-termination-or-conversion-of

Simplified Summary
The NCUA Board (Board) proposes to amend its regulations to streamline member communication requirements with regards to proposed mergers or voluntary termination of federal share insurance. Currently, credit unions must notify members about an upcoming vote on a proposed merger or a credit union’s intentions to terminate its federal share insurance. This proposal would retain the requirement to notify members about the loss of federal insurance coverage for deposits but would remove overly prescriptive formatting requirements for how that notification is conducted. The proposal would also eliminate the requirement for NCUA to post member comments regarding proposed mergers.

Proposed Changes to Rule
The Board proposes to retain the core disclosure and notification requirements when a credit union’s members vote on a decision to merge or terminate federal share insurance coverage and convert to private insurance, but eliminate prescriptive requirements associated with those disclosures.

• Change 1: Remove the requirement for NCUA to post members’ merger-related comments.
  • It would no longer be mandatory for NCUA to post member comments on mergers on a website. Low rates of member feedback indicate affected parties put little value on agency efforts to circulate their views.
  • Impact on Credit Unions: Relaxing this dictate will provide modest merger-related cost savings and reduce unnecessary burden.
• Change 2: Removes typographical and formatting requirements for insurance conversion disclosures.
  • This proposal aims to simplify compliance and lessen the burden of overly prescriptive formatting rules for the mandatory disclosure statement that credit unions must provide to members. Disclosures continue to be required and easy to find but would no longer have overly prescriptive formatting mandates.
  • Impact on Credit Unions: These changes will provide credit unions with greater flexibility in designing effective communications, while still ensuring that members receive clear and prominent notice of a proposed termination of federal insurance.

Bank Conversions and Mergers, Subpart A-Conversion of Insured Credit Unions to Mutual Savings Banks

Status: Comment period closes on April 13, 2026

Summary
The NCUA Board (Board) is proposing to amend its regulations governing the conversion of insured credit unions into banks. The NCUA Board proposes to eliminate certain prescriptive procedural, disclosure, and communication requirements. This action reduces unnecessary regulatory burdens and provides credit union boards of directors with greater flexibility to exercise their business judgment. The intended effect of these changes is to simplify compliance for credit unions, reduce administrative costs, and modernize the conversion process, while ensuring members receive clear and effective disclosures.

Link to full proposal: https://www.federalregister.gov/public-inspection/2026-02763/bank-conversions-and-mergers-conversion-of-insured-credit-unions-to-mutual-savings-banks

Simplified Summary
The Board proposes to amend its regulations related to conversion of insured credit unions into mutual savings banks. This proposal would eliminate certain prescriptive procedural, disclosure, and communication requirements. At present, the regulations governing the conversion process are outdated and overly burdensome. Additionally, the regulations currently include items that are guidance, which may be confusing. NCUA is proposing to simplify compliance and clarify guidance by removing these provisions and relocating guidance to elsewhere on NCUA.gov.

Proposed Changes to Rule
The Board proposes to reduce regulatory burden and increase flexibility by eliminating some procedural, disclosure, and communications requirements for converting insured credit unions to mutual saving banks.

• Change 1: Remove “clear and conspicuous” definition.
  • This definition mandates specific formatting, such as bold type and a minimum 12-point font size for disclosures. The Federal Credit Union Act requires a credit union to notify members of a conversion but doesn’t speak to formatting. This overly prescriptive definition is unnecessary and can hinder effective communication.
  • Impact on Credit Unions: Removing this provision would simplify regulatory compliance for conversion disclosures and allow credit unions the flexibility to design disclosures that are effective and clear for their members.
• Change 2: Remove newspaper publishing requirement.
  • The requirement to publish the proposed conversion in a newspaper is overly burdensome and may no longer be one of the most effective ways to communicate with members. Credit unions are still required to notify members in their home office lobby and on their website’s home page.
  • Impact on Credit Unions: Removing this provision will reduce unnecessary costs associated with communicating a conversion via newspaper.
• Change 3: Remove typographical disclosure requirements and prescriptive language that defines “plain language.”
  • This change would remove specific and overly burdensome 1) requirements for regulatory disclosure text to members about their vote, like text must be in a box, on the front side of a single piece of paper, and immediately follow the cover letter, and 2) examples of factors to consider in determining whether a communication from a converting credit union to its members is in plain language.
  • Impact on Credit Unions: Compliance would be simplified, and credit unions would have more flexibility in their conversion communications.
• Change 4: Remove provisions regarding improper submissions.
  • This change would remove the requirement for a credit union to consult their Regional Director when a member requests information about the conversion be sent to other members and when the credit union believes this request is improper.
  • Impact on Credit Unions: Credit unions would be able to determine when to engage their Regional Director about improper requests.
• Change 5:Remove “Voting Guidelines” from the regulation.
  • This section states the NCUA provides the guidelines as suggestions to help a credit union obtain a fair and legal vote and otherwise fulfill its regulatory obligations. These guidelines are non-binding and may be provided elsewhere.
  • Impact on Credit Unions: This proposal would remove guidance from regulation so that credit unions aren’t confused about what is required.

Post-Election Training for New Board Members

Status: Comment period closes on April 27, 2026

Summary

The NCUA Board (Board) solicits public comment on a proposal to eliminate the regulatory requirement that each director of a federal credit union (FCU) attain a working familiarity with finance and accounting within six months after election or appointment. The Board believes the regulation is unnecessarily prescriptive.

Link to full proposal: https://www.federalregister.gov/public-inspection/2026-03753/post-election-training-for-new-board-members

Simplified Summary
Currently, this regulation requires FCU directors to attain a working familiarity with finance and accounting within six months after election or appointment. The Board is proposing to eliminate this requirement. Certainly, the Board continues to believe that directors must have a working familiarity with basic finance and accounting practices. Nonetheless, specifically requiring that new FCU directors receive specific training in a certain period of time may be unduly burdensome and inadvertently undermine the ability of a credit union’s members to elect their board.

Proposed Changes

• The Board proposes to remove the regulatory requirement for a credit union director to have or obtain expertise in finance and accounting within six months after appointment.
• Impact on credit unions: Removing this requirement reduces overall compliance burden on volunteer boards.

Compensation in Connection With Loans to Members and Lines of Credit to Members

Status: Comment period closes on April 27, 2026

Summary
The NCUA Board (Board) is issuing for public comment a proposal to amend the NCUA’s regulation that limits federally insured credit union (FICU) official and employee compensation in connection with loans to members and lines of credit to members. These regulations have generated confusion and are unduly restrictive. To provide clearer and more flexible standards, the proposed rule would expressly permit incentives and bonuses to employees, including senior management, to incorporate lending metrics as part of compensation based on a credit union’s overall financial performance.

Link to full proposal: https://www.federalregister.gov/public-inspection/2026-03754/compensation-in-connection-with-loans-to-members-and-lines-of-credit-to-members

Simplified Summary
The NCUA Board seeks to amend 12 CFR 701.21(c)(8) which establishes a blanket prohibition on the direct or indirect receipt of any commission, fee, or other compensation by a FICU official, employee, or their immediate family members, in connection with any loan made by their FICU. While the regulation carves out certain exceptions to this prohibition, FICUs have expressed confusion and uncertainty about what is permitted and the definition of “overall financial performance”. They also have asserted that the regulation is subject to varying interpretations and levels of enforcement across the NCUA’s regions.

While NCUA has determined limitations on compensation tied to lending are still necessary, the proposed rule would change the regulation to provide clearer and more flexible standards by adding a definition for “overall financial performance”. Additionally, the proposed rule would expressly permit incentive and bonuses to employees, including senior management, to incorporate lending metrics as part of compensation based on a credit union’s overall financial performance.

Proposed Changes

• Change 1 – Add a definition of “overall financial performance.”
  • The Board is proposing to add a definition of “overall financial performance” to 12 CFR 701.21(c)(8) to clarify requirements related to FICU compensation plans that include incentives or bonuses related to lending metrics as part of the FICU’s overall financial performance.
  • Impact on credit unions: This change would provide clarity about the meaning of the regulation in a way that makes the regulation less burdensome for credit unions. This change would help credit unions recruit and retain staff, which is an important aspect of credit union resiliency.
• Change 2 – Clarify that senior management may receive incentives or bonuses.
  • The Board is proposing to add the phrase “including a senior management employee” to the exception on payments of an incentive or bonus to an employee based on overall financial performance.
  • Impact on credit unions: This change would provide clarity about the meaning of the regulation in a way that makes the regulation less burdensome for credit unions. This change would help credit unions recruit and retain staff, which is an important aspect of credit union resiliency.

Purchase, Sale, and Pledge of Eligible Obligations

Status: Comment period closes on April 27, 2026

Summary
The NCUA Board (Board) solicits public comment on a proposal to streamline its regulations governing the purchase, sale, and pledge of eligible obligations. The Board proposes to remove the prescriptive lists of items that must be addressed in the written policies adopted by a federal credit union (FCU). Although FCUs would still be required to maintain written policies, removing the mandated items will enable a more efficient and principles-based approach. The Board also proposes to remove detailed requirements regarding conflicts of interest and compensation. These regulatory provisions are unnecessary since FCUs are already governed by broader conflict of interest provisions in their bylaws and by the fiduciary duties of their officials.

Link to full proposal: https://www.federalregister.gov/public-inspection/2026-03755/purchase-sale-and-pledge-of-eligible-obligations

Simplified Summary
The Federal Credit Union Act authorizes federal credit unions to purchase, sell, and pledge eligible obligations to provide great flexibility in meeting member demand and improving liquidity. NCUA implements this authority through provisions in 12 CFR 701.23, which includes the requirement that a credit union must have policies governing its purchase, sale, and pledge of eligible obligations and a list of items that those policies must address. The proposed revisions would retain the requirement that a credit union must have policies that address eligible obligations, but it would remove the prescriptive lists of items that must be addressed in written policies.

Proposed Changes

• Change 1 – Revise requirements related to written purchase policies.
  • Currently, 12 CFR 701.23(b)(6) imposes several requirements on a purchasing credit union when the credit union goes to purchase the eligible obligations and notes of other credit unions that are being liquidated. The provisions are specific, detailed requirements that apply to the written internal policies of the credit union interested in making the purchase. The Board believes these requirements are unduly burdensome, especially for smaller FCUs, and proposes to revise the requirements to say just that the eligible obligations and notes of liquidating credit unions must comply with the purchasing FCU’s internal written policies.
  • Impact on credit unions: This change would remove unduly burdensome, overly prescriptive requirements related to an FCU’s internal policies while still requiring the purchasing credit union to have written policies appropriate to their unique portfolio.
• Change 2 – Revise requirements related to the sale of eligible obligations.
  • Currently, 12 CFR 701.23(c) requires federal credit unions to comply with several prescriptive elements in their written policies on the sale of eligible obligations. The Board proposes to revise this requirement in a way that provides the credit union board of directors’ the authority to establish the limitations of their written sale policies.
  • Impact on credit unions: The change would reduce administrative burden without eliminating the requirement that FCUs manage their operations responsibilities. It would also give the FCU more flexibility to tailor their process to its needs and risk profiles.
• Change 3 – Remove payments and compensation requirements.
  • The Board proposes to remove 12 CFR 701.23(g), regarding payments and compensation, finding the requirement to be duplicative and unduly burdensome. FCUs are governed by broader conflict of interest provisions in their bylaws and by the fiduciary duties of their officials.
  • Impact on credit unions: The change would address a provision that is duplicative of other requirements and unduly burdensome

Refund of Interest

Status: Comment period closes on April 27, 2026

Summary 
The NCUA Board (Board) is issuing for public comment a proposal to rescind its regulation § 701.24, which addresses the refund of interest to members. This regulation is redundant, as it restates the authority already granted to a federal credit union’s (FCU’s) board of directors by the Federal Credit Union Act (FCU Act) section 113(9).

Link to full proposal:  https://www.federalregister.gov/public-inspection/2026-03756/refund-of-interest

Simplified Summary 
The NCUA Board is proposing to eliminate 12 CFR 701.24 because it is duplicative of the Federal Credit Union Act (FCU Act, see 12 U.S.C. 1761b(9)). The FCU Act authorizes FCU’s board of directors to refund interest to members at the close of business on the last day of any dividend period. This refund is in proportion to the interest paid by the member in that dividend period. This proposal would reduce regulatory burden by limiting the number of sources that FCUs must check to ensure compliance with laws and regulations.

Proposed Changes 

• The Board proposes to remove 12 CFR 701.24 because it is duplicative of the FCU Act.
• Impact on credit unions: This change would minimize compliance burden by centralizing requirements into one place. FCUs would only need to reference the FCU Act (12 U.S.C. 1761b(9)) to confirm requirements for refunds of interest to members.

Credit Union Service Contracts

Status: Comment period closes on April 27, 2026

Summary 
The NCUA Board (Board) is proposing to revise its regulations governing the organization and operation of federal credit unions (FCUs) by eliminating a provision related to credit union service contracts. The Board intends to reduce administrative costs and compliance complexity with this revision, enabling FCUs to serve their members more efficiently.

Link to full proposal: https://www.federalregister.gov/public-inspection/2026-03757/credit-union-service-contracts

Summary 
The Board proposes to rescind 12 CFR 701.26 which outlines the authority for an FCU to enter into contracts for assets or services that relate to its daily operations with other credit unions and organizations. The authority for an FCU to enter into contracts for operational services is inherent in its charter and its general powers under the FCU Act. Under current regulation, these agreements must be in writing and must advise all parties subject to the agreement that the goods and services provided are subject to examination by the NCUA to the extent permitted by law. The regulation’s principal requirement – that such agreements be in writing – is a standard business practice, which exists regardless of whether it is mentioned in the NCUA’s regulations. Rescinding this regulation does not change the basic operating expectations for credit unions.

Proposed Changes

• The Board proposes to remove 12 CFR 701.26, which authorizes FCUs to enter into contractual agreements, but requires agreements be in writing. .
• Impact on credit unions: This change would minimize compliance complexity by removing superfluous requirements.

Statutory Liens

Status: Comment period closes on April 27, 2026

Summary 
The NCUA Board (Board) is publishing this proposed rule to remove a provision under section 12 CFR 701.39 of NCUA regulations regarding federal credit unions’ (FCUs) statutory lien authority. The Board believes it is redundant to continue to include a definition of the term “except as otherwise provided by law or except as otherwise provided by federal law” when it is axiomatic that a law that supersedes this regulation would be controlling. The provision does not provide any assistance to FCUs in determining whether such statutory or case law exists, therefore it has no material value.

Link to full proposal: https://www.federalregister.gov/public-inspection/2026-03758/statutory-liens

Simplified Summary 
12 CFR 701.39, related to statutory liens, states that an FCU has the power to impress and enforce a lien against a member’s shares and dividends to satisfy any outstanding obligations owed to the credit union. 12 CFR 701.39(a)(1) defines the phrase “except as otherwise provided by law or except as otherwise provided by federal law.” The NCUA Board proposes to remove the definition of this phrase because the language is unnecessary and obvious. The definition does not add anything to the plain meaning of these words.

Proposed Changes 

• The Board proposes to eliminate the definition of “except as otherwise provided by law or except as otherwise provided by federal law” from NCUA regulation 12 CFR 701.39.
• Impact on credit union: Removing unnecessary text makes the regulation easier to understand and reduces the compliance burden.

Records Preservation Program and Appendices-Record Retention Guidelines; Catastrophic Act Preparedness Guidelines

Status: Comment period closes on May 11, 2026

Summary
On April 24, 2024, the NCUA Board (Board) published an advance notice of proposed rulemaking (ANPR) to solicit comments on ways the agency can improve and update its vital records preservation program regulation and accompanying guidelines. Based on public comments received in response to the ANPR and upon further consideration of the issues involved, the Board is publishing this proposed rule to simplify and streamline part 749. The Board is proposing to update part 749 by clarifying the purpose of the regulation, updating the definitions, and removing the appendices.

Link to full proposal:  https://www.federalregister.gov/public-inspection/2026-04761/records-preservation-program-and-appendices-record-retention-guidelines-catastrophic-act

Simplified Summary
The purpose of the proposed rule is to reduce the regulatory burden of vital records preservation. The proposed changes would ensure that only essential records are kept, and only for as long as they are necessary to restore important member services. The Board is proposing to update 12 CFR 749 by clarifying the purpose of the regulation, updating the definitions, and removing unnecessary references to recommendations and guidance.

The main proposed changes would remove both Appendix A and Appendix B entirely.

Proposed Changes

• Change 1: Remove Appendix A.
  • The Board proposes to remove Appendix A which was added as “suggested guidelines” but is often followed as a requirement. This has created an obstacle to sound record retention practices and has resulted in credit unions retaining unused and obsolete records. Appendix A duplicates language provided elsewhere in regulation and section C of Appendix A is overly prescriptive.
  • Impact on credit unions: Removing this section will give credit union boards of directors more discretion and flexibility to determine the process for records destruction.
• Change 2: Remove Appendix B.
  • The Board proposes to remove Appendix B because it is meant as guidance. Having guidance within the regulation leads to potential misinterpretation about what is required.
  • Impact on credit unions: This change will provide clarity on what is required by regulation and what is meant to be guidance.
• Change 3: Define vital member services and vital records. (12 CFR 749.1)
  • The proposed rule provides definitions for the terms vital member services and vital records to provide clarity. The current rule only explains them through examples.
  • Impact on credit unions: Providing these definitions will give credit unions a better understanding of what is considered vital in their records preservation programs.
• Change 4: Amend the rule title and scope to emphasize vital. (12 CFR 749)
  • The Board proposes to add the term vital to the heading of 12 CFR 749 so that it will read: Vital Records Preservation Program.
  • Impact on credit unions: This change will make it clear to credit unions that the scope of 12 CFR 749 is limited to vital records.
• Change 5: Clarify a records preservation log may be maintained electronically. (12 CFR 749.2(a))
  • The Board proposes to make clear that a records preservation log may be in electronic format.
  • Impact on credit unions: This change will create more flexibility for credit unions to manage and store vital records.
• Change 6: Clarify that, unless required by other law or regulation, older versions of vital records may be destroyed once their current versions are stored. (12 CFR 749.2(c))
  • The Board proposes to permit destruction of older versions of records unless required by other law or regulation.
  • Impact on credit unions: This change will allow credit unions to get rid of and no longer be responsible for unnecessary records.
• Change 7: Clarify NCUA expectations regarding contracts with a third party to maintain vital records. (12 CFR 749.3)
  • The Board proposes to state clearly the NCUA’s expectation that, if a credit union contracts with a third-party service provider to maintain its vital records, the credit union must maintain effective oversight of the third-party service provider to ensure the credit union meets its obligations under part 749.
  • Impact on credit unions: This change would provide clarity about the meaning of the regulation in a way that makes the regulation less burdensome for credit unions.

Third-party servicing of indirect vehicle loans (12 CFR Regulation 746.201)

Status: Comment period closes on May 26, 2026

Summary
The NCUA Board (Board) is seeking comment on a proposed rule that would remove the NCUA’s unnecessarily prescriptive regulation regarding third-party servicing of indirect vehicle loans. This action would reduce regulatory burden and provide credit unions with greater operational flexibility, consistent with a principles-based supervisory approach. The intent is to reduce administrative costs and compliance complexity, enabling credit unions to serve their members more efficiently.

Link to full proposal: https://www.federalregister.gov/public-inspection/2026-05797/third-party-servicing-of-indirect-vehicle-loans

Simplified Summary
Currently,12 CFR § 701.21(h), Third-party servicing of indirect vehicle loans, limits a federally insured credit union’s ability to purchase indirect auto loans serviced by a third party. Today, a credit union can only invest up to 50 percent of its net worth in indirect auto loans serviced by a third party. After 30 months of experience with a particular servicer, a credit union can invest up to 100 percent of its net worth in indirect auto loans serviced by that third party. The proposed rule would remove these overly prescriptive limitations. 

The requirements of 12 CFR § 701.21(h) are applied to state chartered credit unions in This is an external link to a website belonging to another federal agency, private organization, or commercial entity. 12 CFR § 741.203(c)(Opens new window) . NCUA regulation § 701.21(h), Third-party servicing of indirect vehicle loans, is also referenced in NCUA’s appeals rules in § 746.201(c), Scope. The proposed rule would also remove paragraph (c) from § 741.203 and the reference to § 701.21(h) found in § 746.201(c).

Proposed Changes

• The Board proposes to remove limits on federally insured credit unions’ ability to purchase or participate in indirect auto loans serviced by a third party by removing sections § 701.21(h) and § 741.203(c).
• Impact on credit unions: Removing these limits would reduce regulatory burden and allow credit unions and their boards greater flexibility to decide what amount of purchased indirect vehicle loans serviced by third parties is appropriate for the credit union’s size, the complexity of the transactions, and the board’s risk tolerance. 

Third-party servicing of indirect vehicle loans (12 CFR Regulation 701.21(h))

Status: Comment period closes on May 26, 2026

Summary
The NCUA Board (Board) is seeking comment on a proposed rule that would remove the NCUA’s unnecessarily prescriptive regulation regarding third-party servicing of indirect vehicle loans. This action would reduce regulatory burden and provide credit unions with greater operational flexibility, consistent with a principles-based supervisory approach. The intent is to reduce administrative costs and compliance complexity, enabling credit unions to serve their members more efficiently.

Link to full proposal: https://www.federalregister.gov/public-inspection/2026-05797/third-party-servicing-of-indirect-vehicle-loans

Simplified Summary
Currently, 12 CFR § 701.21(h), Third-party servicing of indirect vehicle loans, limits a federally insured credit union’s ability to purchase indirect auto loans serviced by a third party. Today, a credit union can only invest up to 50 percent of its net worth in indirect auto loans serviced by a third party. After 30 months of experience with a particular servicer, a credit union can invest up to 100 percent of its net worth in indirect auto loans serviced by that third party. The proposed rule would remove these overly prescriptive limitations. 

The requirements of 12 CFR § 701.21(h) are applied to state chartered credit unions in This is an external link to a website belonging to another federal agency, private organization, or commercial entity. 12 CFR § 741.203(c)(Opens new window) . NCUA regulation § 701.21(h), Third-party servicing of indirect vehicle loans, is also referenced in NCUA’s appeals rules in § 746.201(c), Scope. The proposed rule would also remove paragraph (c) from § 741.203 and the reference to § 701.21(h) found in § 746.201(c).

Proposed Changes

• The Board proposes to remove limits on federally insured credit unions’ ability to purchase or participate in indirect auto loans serviced by a third party by removing sections § 701.21(h) and § 741.203(c).
• Impact on credit unions: Removing these limits would reduce regulatory burden and allow credit unions and their boards greater flexibility to decide what amount of purchased indirect vehicle loans serviced by third parties is appropriate for the credit union’s size, the complexity of the transactions, and the board’s risk tolerance. 

NCUA Supervisory Priorities for 2026 under Chairman Kyle Hauptman include:

• Balance Sheet Management. Regarding lending, sensitivity to market risk and liquidity, earnings and capital adequacy.
• Operational Risk Management. Including payment systems and fraud prevention and detection.
• Compliance Risk Management. BSA compliance and AML/Countering the Financing of Terrorism (CFT) programs.

Details are available at NCUA.gov. Feedback or questions concerning the 2026 supervisory priorities should be directed to your NCUA examiner, regional office or AskNCUA.