NCUA Advances Deregulation Efforts with Eighth Round Proposal

Posted by Erin Hall on March 25, 2026

The NCUA’s ongoing Deregulation Project continues to move forward, with the agency announcing its eighth round of proposed regulatory changes—another step in its broader effort to modernize rules and reduce unnecessary burden on credit unions.

Like prior rounds, the proposal reflects a consistent theme: remove outdated or overly prescriptive requirements while maintaining safety and soundness expectations.

This round focuses on a single, but meaningful, area of lending:

Indirect auto loan purchases and participations

The NCUA is proposing to eliminate regulatory provisions that currently place limits on credit unions’ ability to purchase and hold indirect vehicle loans serviced by third parties.

If finalized, this change would:

1. Remove prescriptive caps on these activities
2. Provide credit unions with greater flexibility to manage their loan portfolios
3. Shift decision-making authority more directly to credit union boards and management teams

What This Means for Credit Unions

For many credit unions—particularly those leveraging indirect lending for growth—this proposal could open the door to expanded opportunity.

In practical terms, the change:

1. Enhances flexibility in how credit unions structure auto lending strategies
2. Supports balance sheet growth through loan participations and third-party originations
3. Aligns regulatory expectations with modern lending practices

Posted in Advocacy on the Move, Regulatory Advocacy.