NCUA issues proposal on third-party auto loan servicing

The NCUA issued the eighth round of proposed regulatory changes as part of its Deregulation Project Tuesday. The one proposed change would remove existing limits on how much indirect auto lending a credit union can do through a single third-party servicer. 

Rather than following a one-size-fits-all cap, the proposal would give credit unions more flexibility to set their own policies. America’s Credit Unions' legacy organizations previously advocated for the removal of prescriptive limits in the past. 
  
Comments are due within 60 days.  

Watch for an upcoming Regulatory Comment alert from America’s Credit Unions requesting member feedback on the proposal.