ALEXANDRIA, Va.– NCUA has announced its eighth round of proposed regulatory changes associated with its Deregulation Project, which it describes as an ongoing review of regulations to ensure regulations are “focused on credit unions’ safety, soundness, and resilience.”
The newest announcement brings to 21 the number of proposals the agency has made as part of the Project.
With the new proposal, NCUA is requesting comments on a proposal that would eliminate unduly burdensome requirements in the Code of Federal Regulations related to third-party servicing of indirect vehicle loans.
NCUA said the it proposes to remove defined limits on credit unions’ ability to purchase or participation in third-party auto loans.
Proposed Change: The Board proposes to remove limits on federally insured credit unions’ ability to purchase or participate in indirect auto loans serviced by a third party by removing sections § 701.21(h) and § 741.203(c).
Impact on credit unions: According to NCUA, “Removing these limits would reduce regulatory burden and allow credit unions and their boards greater flexibility to decide what amount of purchased indirect vehicle loans serviced by third parties is appropriate for the credit union’s size, the complexity of the transactions, and the board’s risk tolerance.”
Additional Information & Comment
NCUA said:
- To submit comments, type or paste the docket numbers into the search on the Federal Rulemaking Portal.
- For more information about the NCUA Deregulation Project, visit: https://ncua.gov/news/deregulation-project
