NCUA Releases Seventh Set of Proposed Rules Changes under Deregulation Project

Posted by Erin Hall on March 10, 2026

The National Credit Union Administration (NCUA) has announced the seventh round of proposed regulatory changes under its ongoing Deregulation Project, aimed at ensuring regulations remain focused on safety, soundness, and resilience. This latest proposal centers on updates to 12 CFR 749, which governs records preservation and catastrophic‑act preparedness.

This round of proposals will be open for public comment for 60 days following publication published in the Federal Register.

The proposals include:

1. Removal of Appendix A

Proposed Change: NCUA proposes removing Appendix A from Part 749.
Impact: This shift gives credit union boards more discretion and flexibility in how they manage their records destruction processes.

2. Removal of Appendix B

Proposed Change: Appendix B—intended as guidance—would also be removed.
Impact: Keeping guidance inside regulation can confuse what is required versus what is recommended. Removing it improves clarity.

3. New Definitions for “Vital Member Services” and “Vital Records”

Proposed Change: Currently, definitions are only given through examples.
Impact: Clear definitions help credit unions better understand what must be preserved under their records preservation programs.

4. Updated Title and Scope Clarification

Proposed Change: The rule would be renamed “Vital Records Preservation Program,” and the term vital would be added throughout Part 749.
Impact: It clarifies that Part 749 applies only to vital records—not all records.

5. Electronic Records Preservation Logs Explicitly Allowed

Proposed Change: NCUA proposes clarifying that logs may be kept electronically.
Impact: This modernizes compliance and offers more flexibility in managing preserved records.

6. Permission to Destroy Older Versions of Records

Proposed Change: Older record versions may be destroyed unless other laws require retention.
Impact: Credit unions can reduce storage burdens and limit responsibility for unnecessary historic versions.

7. Clearer Expectations for Third‑Party Oversight

Proposed Change: Credit unions using third‑party service providers for vital records must maintain effective oversight.
Impact: Reinforces that outsourcing does not remove the credit union’s compliance responsibility—but clarifies expectations in a way that reduces regulatory uncertainty.

Why These Changes Matter

Together, these proposed updates aim to:

• Reduce regulatory confusion
• Modernize recordkeeping expectations
• Promote flexibility in operational processes
• Help credit unions focus on truly vital records
• Ensure oversight is effective without being overly burdensome

Across Rounds 1 through 6, the proposals offering the most meaningful regulatory relief include the removal of segregated‑collateral requirements for suretyship and guarantees, simplified rules for lending to other credit unions, expanded flexibility in catastrophic‑act reporting, and the elimination of unnecessary written plans and duplicative disclosures. The modernization of Supervisory Committee audit and verification requirements is also expected to reduce burden. These changes primarily assist small and mid‑sized credit unions, with targeted benefits for FISCUs and corporate credit unions.

Background: NCUA Deregulation Project

In 2025, the National Credit Union Administration (NCUA) launched the Deregulation Project, a broad effort to review and revise its regulations. The initial focus is on removing or updating rules that are outdated, duplicative of statute, intended as guidance rather than requirements, or unnecessarily burdensome.

Overall, the Deregulation Project signals a move toward less prescriptive, more flexible rulemaking. If finalized, these changes will offer meaningful regulatory relief for all credit unions by eliminating exam expectations that do not contribute to safety and soundness.

How We Are Engaging

GoWest is prioritizing advocacy that makes the NCUA’s regulatory framework more transparent, predictable, and aligned with statute.

These initial deregulatory steps show progress, and we will continue building on them in 2026.

Find more information and details on the proposed deregulations here.

Posted in Advocacy on the Move, Regulatory Advocacy.