NCUA announces fifth round of deregulation proposals

Stakeholders Are Encouraged to Review Notice of Proposed Rulemakings and Submit Comments

The National Credit Union Administration today announced the fifth round of proposed regulatory changes associated with NCUA’s Deregulation Project. The project is an ongoing review of NCUA’s regulations to ensure regulations are focused on credit unions’ safety, soundness, and resilience.

With today’s announcement, NCUA is requesting comments on three proposals that would clarify agency guidance or eliminate unduly burdensome or duplicative requirements in the Code of Federal Regulations.

The three proposals include:

Conversion of Insured Credit Unions to Mutual Saving Banks – 12 CFR 708a

• 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.
• Impact on Credit Unions: Among other things, the proposed change would simplify regulatory compliance for conversion disclosures and allow credit unions the flexibility to design disclosures that are effective and clear for their members.

Mergers of Insured Credit Unions Into Other Credit Unions; Voluntary Termination or Conversion of Insured Status – 12 CFR 708b

• 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.
• Impact on Credit Unions: This proposed change would relax a dictate to provide modest merger-related cost savings and reduce unnecessary burden. It would 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.

Organization and Operation of Federal Credit Unions (Low Income Designation & Community Charters) – IRPS 06-1

• The Board proposes to rescind IRPS 06-1 because the current Field of Membership (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 federal credit unions by limiting the number of sources they must check to ensure compliance with applicable community chartering and FOM requirements.

Proposed Regulation Change	Obsolete Regulations	Overly Burdensome Requirements	Duplicative	Guidance
12 CFR 708a		✔		✔
12 CFR 708b		✔
IRPS 06-1	✔		✔

To submit comments, type or paste the docket numbers into the search on the Federal Rulemaking Portal.

Visit the NCUA Deregulation Project for more information.