NCUA Announces Sixth Round of Deregulation Proposals

On February 24, 2026, the NCUA announced the sixth round of proposed regulatory changes associated with its Deregulation Project. The project is an ongoing review of NCUA’s regulations to ensure that regulations are focused on credit unions’ safety, soundness, and resilience.

The NCUA is requesting comments on the following six proposals:

• Post-Election Training for New Board Members [12 CFR 701.4(b)(3)]. The Board proposes to remove the regulatory requirement for a credit union director to have or obtain expertise in finance and accounting within six months after appointment.

• Loan Compensation/Commission [12 CFR 701.21(c)(8]. The Board is proposing to add a definition of “overall financial performance” to 12 CFR 701.21(c)(8) to clarify requirements related to FICU compensation plans that include incentives or bonuses related to lending metrics as part of the FICU’s overall financial performance. The Board also proposes to add the phrase “including a senior management employee” to the exception on payments of an incentive or bonus to an employee based on overall financial performance.

• Eligible Obligations [12 CFR 701.23]. 

• Proposed Change 1: The Board proposes to revise the requirements related to written purchase policies to say that the eligible obligations and notes of liquidating credit unions must comply with the purchasing FCU’s internal written policies.

• Proposed Change 2: The Board proposes to revise the requirements related to the sale of eligible obligations in a way that provides the credit union board of directors’ authority to establish the limitations of their written sale policies.

• Proposed Change 3: The Board proposes to remove 12 CFR 701.23(g), regarding payments and compensation, because FCUs are already governed by broader conflict of interest provisions in their bylaws and by the fiduciary duties of their officials.

• Refund of Interest (Loans) [12 CFR 701.24]. The Board proposes to remove 12 CFR 701.24 because it is duplicative of the FCU Act.

• Credit Union Service Contracts [12 CFR 701.26]. The Board proposes to remove 12 CFR 701.26, which authorizes FCUs to enter into contractual agreements, but requires agreements be in writing.

• Definitions related to Statutory Lien [12 CFR 701.39(a)(1)]. The Board proposes to eliminate the definition of “except as otherwise provided by law or except as otherwise provided by federal law” from NCUA regulation 12 CFR 701.39.

The NCUA’s press release can be found here.