NCUA Releases Fifth Set of Proposed Rules Changes under Deregulation Project

Posted by Erin Hall on February 10, 2026

The NCUA has released its fifth set of proposed rule changes under its Deregulation Project, aimed at reducing duplicative requirements and increasing operational flexibility while maintaining safety and soundness.

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

CU-to-mutual savings bank conversions (12 CFR 708a)

• Streamlines procedural, disclosure, and communication requirements.

Mergers, voluntary terminations, and insurance conversions (12 CFR 708b)

• Maintains core member‑notice principles while removing prescriptive process requirements.

Field of membership and low-income designation (IRPS 06‑1)

• Rescinds guidance now incorporated into the Chartering Manual.

Across Rounds 1 through 5, 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.

Other elements of the initiative focus on administrative cleanup, such as rescinding outdated IRPS documents, relocating cybersecurity and incident‑response appendices out of regulatory text, and repealing duplicative nondiscrimination‑summary rules. While these revisions improve clarity and organization, they carry limited operational impact.

Comment periods for Rounds 1 and 2 have closed or are nearing completion, while Rounds 3 through 5 remain open through March and April. No final rules have been issued, and the initiative continues to be proposal‑oriented.

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 The initial focus is on removing or updating rules that are outdated, duplicative of statute, intended as guidance rather than requirements, or unnecessarily burdensome.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.