NCUA Eighth Round of Deregulation Proposals

NCUA Press Releases

Published March 24th, 2026

Detected March 24th, 2026

Summary

The NCUA has announced its eighth round of proposed regulatory changes, focusing on deregulation. This proposal aims to remove limits on federally insured credit unions' ability to purchase or participate in third-party serviced indirect auto loans, reducing regulatory burden and increasing flexibility for credit unions.

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What changed

The National Credit Union Administration (NCUA) has issued a Notice of Proposed Rulemaking as part of its ongoing Deregulation Project. Specifically, the NCUA proposes to remove sections § 701.21(h) and § 741.203(c) of the Code of Federal Regulations, which currently impose defined limits on credit unions' ability to purchase or participate in third-party serviced indirect vehicle loans. This action is intended to reduce regulatory burden and provide credit unions with greater flexibility in managing their indirect auto loan portfolios based on their specific risk tolerance and operational complexity.

Credit unions are encouraged to review the proposed changes and submit comments. The proposal aims to eliminate what the NCUA deems overly burdensome and duplicative requirements. While the document does not specify a compliance deadline for a final rule, it does reference related comment deadlines for other proposals, including March 30, 2026, and April 13, 2026, suggesting a similar timeframe for this proposal's comment period. Failure to comply with future final regulations could result in supervisory action.

What to do next

Review proposed removal of 12 CFR § 701.21(h) and § 741.203(c)
Submit comments on the proposed deregulation of indirect auto loans

Source document (simplified)

NCUA Announces Eighth Round of Deregulation Proposals

March 2026 NCUA Announces Eighth Round of Deregulation Proposals

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

Alexandria, VA (March 24, 2026) ―The National Credit Union Administration today announced the eighth 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 a proposal that would eliminate unduly burdensome requirements in the Code of Federal Regulations related to third-party servicing of indirect vehicle loans.

The Board proposes to remove defined limits on credit unions’ ability to purchase or participation in third-party auto loans.

Proposed Change: 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.

| Proposed Regulation Change | Obsolete Regulations | Overly Burdensome Requirements | Duplicative | Guidance |
| --- | --- | --- | --- | --- |
| 12 CFR Regulation 701.21(h) | | ✔ | | |
| 12 CFR Regulation 741.203(c) | | ✔ | | |
| 12 CFR Regulation 746.201 | | ✔ | | |

The NCUA was created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, the NCUA operates and manages the Share Insurance Fund, insuring the deposits of more than 145 million account holders in all federal credit unions and most state-chartered credit unions.

Last modified on

03/24/26