NCUA Finalizes 11 Rule Changes
The National Credit Union Administration ("NCUA") finalized 11 rule changes to remove obsolete and burdensome requirements as the first round of its Deregulation Project.
The rules were published in the Federal Register on August 6, 2026, and all 11 take effect on September 8, 2026.
The amendments include the following:
1. 12 CFR 701.20(c)(3) and (d): Suretyship and Guaranty - Removes the requirement that a credit union hold a segregated deposit or collateral covering its full exposure when guaranteeing a member's obligation. Guarantees must still be capped at a set dollar amount and time period.
2. 12 CFR 701.21(h): Third-Party Servicing of Indirect Vehicle Loans - Eliminates the caps on indirect auto loans serviced by a third party (previously 50 percent of net worth, rising to 100 percent after 30 months with that servicer).
3. 12 CFR 701.23: Eligible Obligations - Written policies on purchase, sale, and pledge are still required, and federal credit unions will continue to be evaluated on compliance with them. What is gone are the prescriptive mandates layered on top: the detailed requirements for purchasing from liquidating credit unions, the prescriptive elements that had to be addressed in written sale policies, and the conflicts-of-interest and compensation provision at 701.23(g). Across the removed paragraphs, the requirements covered due diligence, risk management, underwriting, portfolio concentration limits, and legal review.
4. 12 CFR 701.25(b): Limits on Loans to Other Credit Unions - Removes the written-policy and documentation requirements for loans to other credit unions. Board approval is unaffected: the Federal Credit Union Act independently requires an FCU's board of directors to approve all such loans, and the NCUA found the regulation largely redundant of that statutory requirement. The aggregate lending limits elsewhere in 701.25 remain.
5. 12 CFR 701.26: Credit Union Service Contracts - Rescinded, but not a pure deletion. The NCUA simultaneously added 12 CFR 721.3(n) to the incidental powers rule, expressly recognizing FCU authority to act as a representative of, and contract with, one or more credit unions or other organizations for the sharing, renting, leasing, purchasing, selling, or joint ownership of fixed assets, or for activities relating to daily credit union operations. This is the only substantive addition in the package.
6. 12 CFR 741.5: Notice of Termination of Excess Insurance Coverage - Drops the fixed 30-day notice period before terminating supplemental share insurance.
7. 12 CFR 741.10: Disclosure of Share Insurance for Non-Member Shares - Eliminates the requirement that federally insured, state-chartered credit unions flag uninsured non-member accounts on reports and separately notify each holder in writing.
8. IRPS 06-1: Adding Underserved Areas - Rescinded. The NCUA issued IRPS 06-1 in 2006 to update and clarify its policies for adding underserved areas; the action is a chartering and field-of-membership item.
9. IRPS 08-2: Service to Underserved Areas - Rescinded. Underserved-area requirements already sit in Chapter 3 of the Chartering Manual; no substantive requirements change.
10. IRPS 10-1: Community Chartering Policies - Rescinded as duplicative of the Chartering Manual.
11. IRPS 11-02: Federal Corporate Credit Union Chartering - Rescinded. NCUA will rely on the Federal Corporate Credit Union Chartering Manual for chartering guidance and procedures instead.
NCUA Chair Kyle Hauptman said the changes advance the agency's commitment to removing regulations that are obsolete, burdensome, duplicative, or that function as guidance rather than binding rule (see prior coverage). The changes are intended to give credit unions more flexibility to serve members and remain competitive.