NCUA announces four more proposals as part of Deregulatory Project

NCUA’s latest round of regulatory relief proposals contain several changes requested by America’s Credit Unions. The proposals are part of NCUA’s Deregulation Project, an ongoing review of NCUA’s regulations to ensure regulations are focused on credit unions’ safety, soundness, and resilience while removing or revising regulations that are: obsolete; overly burdensome; duplicative of other requirements; or guidance. 

Announced by the NCUA Tuesday, these four proposals are set to publish in the Federal Register Dec. 29 and will be open for comment for 60 days following publication. The four proposals include: 

• Changes for Surety and Guarantor Requirements: NCUA is proposing changes to segregated deposit and collateral requirements, removing the requirement that a federally insured credit union obtain a segregated deposit or specific collateral to cover a suretyship or guaranty obligation.
• Changes for Limits on Loans to Other Credit Unions: NCUA is proposing to remove the regulatory requirement that a federally insured credit union board approve loans to other credit unions and adopt written policies setting internal limits for those loans.
• Changes for Catastrophic Reporting: NCUA is proposing to extend the deadline for a federally insured credit union to report a catastrophic act to 15 calendar days, require notice to NCUA rather than notice to the appropriate regional director, and replace the prescriptive recordkeeping list with a requirement to prepare a record that contains the basic facts of the event.
• Changes for Accuracy of Advertising and Notice of Insured Status: NCUA is proposing to remove the requirement to include the official advertising statement in advertisements by deleting the provision that sets that requirement and revise the scope provision to reflect that the rule addresses the official sign, requires other advertisements to be accurate, and sets requirements for excess insurance advertising. 

America’s Credit Unions requested updates to the advertising and insured status portion of NCUA’s rules in an October comment letter, asking for modernizations, ways to lower costs, and clarity.  

Agency staff shared the latest information with America’s Credit Unions member in a webinar last week, and noted future project proposals would come in groups of four.