The National Credit Union Administration (NCUA) has announced a second set of proposed regulatory changes as part of its ongoing Deregulation Project. The initiative is aimed at reviewing and updating NCUA regulations to ensure they support the safety, soundness, and resilience of credit unions while removing rules that are considered obsolete, overly burdensome, duplicative, or unnecessary guidance.
As part of this round, the agency is seeking public comment on four proposals that address different areas within the Code of Federal Regulations. These proposals are designed to clarify existing guidance or eliminate requirements that may no longer be needed.
The first proposal concerns changes to surety and guarantor requirements under 12 CFR 701.20(c)(3) and 701.20(d). The NCUA is suggesting updates to segregated deposit and collateral requirements. More details can be found at https://www.federalregister.gov/public-inspection/2025-23857/suretyship-and-guaranty-segregated-deposit-and-collateral.
The second proposal addresses limits on loans to other credit unions under 12 CFR 701.25(b). The agency aims to remove a requirement it considers both duplicative of statute and unduly burdensome for credit unions making such loans. Further information is available at https://www.federalregister.gov/public-inspection/2025-23855/limits-on-loans-to-other-credit-unions.
A third proposal involves catastrophic act reporting under 12 CFR 748.1(b), with suggested changes related to how such incidents are reported by credit unions. Details are provided at https://www.federalregister.gov/public-inspection/2025-23856/catastrophic-act-reporting.
Finally, the NCUA proposes removing certain advertising requirements under 12 CFR 740.0 and 740.5 that it now considers overly prescriptive or obsolete regarding accuracy of advertising and notice of insured status for credit unions. More information can be found at https://www.federalregister.gov/public-inspection/2025-23854/accuracy-of-advertising-and-notice-of-insured-status.
Stakeholders are encouraged by the NCUA to review these notices of proposed rulemakings and submit comments through the Federal Rulemaking Portal by searching for the relevant docket numbers.
According to the agency, “The project is an ongoing review of NCUA’s regulations to ensure regulations are focused on credit unions’ safety, soundness, and resilience.” The announcement also notes that the NCUA’s efforts focus on “removing or revising regulations that are: obsolete; overly burdensome; duplicative of other requirements; or guidance.”
The NCUA was established by Congress as an independent federal agency responsible for regulating, chartering, and supervising federal credit unions in the United States. It manages the National Credit Union Share Insurance Fund, which insures deposits for more than 143 million account holders across all federal credit unions and most state-chartered institutions.
For additional details about the Deregulation Project or submitting comments on these proposals, stakeholders can visit https://ncua.gov/news/deregulation-project.
