NCUA Proposes Four Deregulatory Changes Under New Review Initiative

The National Credit Union Administration ("NCUA") proposed four regulatory changes to clarify guidance on cybersecurity response programs, eliminate obsolete requirements for federal credit union conversions, remove outdated references to the Central Liquidity Facility, and update technical provisions in lending rules.

The first proposal would clarify NCUA Rule 748.1 ("Filing of reports") regarding response programs for unauthorized access to member information and member notice requirements. The proposal provides clearer guidance on cybersecurity incident response obligations.

The second proposal would eliminate requirements in NCUA Rule 708b ("Mergers of Insured Credit Unions into Other Credit Unions; Voluntary Termination or Conversion of Insured Status") related to federal credit union conversions to mutual savings banks, removing provisions that have become obsolete following changes in state and federal law.

The third proposal would remove outdated references to the Central Liquidity Facility from various NCUA regulations, streamlining provisions that no longer reflect current operational practices.

The fourth proposal would make technical updates to NCUA lending rules, removing unduly burdensome requirements that do not materially contribute to credit union safety and soundness.

The Deregulation Project follows Executive Order 14192, Unleashing Prosperity Through Deregulation, and will involve a comprehensive review of regulations in Title 12, Chapter VII of the Code of Federal Regulations. The NCUA stated it will propose changing or removing regulations that are outdated, unnecessarily burdensome, or duplicative of other requirements.

The NCUA is accepting comments on all four proposals through the Federal Register docket system. Specific comment deadlines will be published in upcoming Federal Register notices.