WASHINGTON–Both America’s Credit Unions and the Defense Credit Union Council have submitted comment letters to NCUA in support of four of its proposals as part of its Changes outlined in four proposals issued by the NCUA as part of its Deregulation Project.
The four proposals include:
- Public Unit and Nonmember Shares, which seeks to remove the requirement to submit written plans for preapproval when public unit, nonmember shares, or borrowings exceed 70% of capital, reducing administrative burden while preserving supervisory oversight.
- Requirements for Insurance, which would remove duplicative disclosure and reporting requirements for uninsured nonmember shares that are already required under contractual share insurance agreements.
- Requirements for Insurance; Maximum Borrowing Authority; which would remove duplicative federal borrowing authority limits and waiver requirements to reduce regulatory burdens and reinforce the dual chartering system without compromising safety and soundness.
- Notice of Termination of Excess Insurance Coverage, which would remove the fixed 30-day member notice requirement to provide credit unions greater flexibility to align notice timing with contractual and state law obligations while maintaining member notification protections.
America’s Credit Unions’ letters can be found here.
The DCUC letters can be found here.
America’s CUs Urges GSA to Withdraw Proposal
Separately, America’s Credit Unions said the General Services Administration’s (GSA) proposed changes to System for Award Management (SAM) certifications could create new challenges for federal financial assistance applicants. In a letter, the trade group called on the GSA to withdraw its proposed changes, stating they may be too vague and could create confusion that unintentionally burdens credit unions and community development financial institutions (CDFIs).
In the letter, Head of Regulatory Advocacy James Akin stated that undefined terms around “discriminatory practices” and “diversity, equity, inclusion, and accessibility (DEIA) program” requirements would make compliance unclear, potentially forcing credit unions and other applicants to incur legal costs or opt out of federal programs altogether.
Akin also noted the proposal could unintentionally limit access to financial services in underserved communities, conflict with existing legal requirements, and discourage effective programs—particularly those run by CDFIs.
