The National Credit Union Administration has announced proposed rules changes and encouraged stakeholders to comment. The proposal comes as part of the administration’s ongoing efforts towards deregulation. According to NCUA, the changes are aimed at ensuring “regulations are focused on credit unions’ safety, soundness, and resilience.”
The proposed changes primarily revolve around the subject of record retention and include:
- Removal of an appendix allow for greater flexibility in the process of records destruction;
- Removal of another appendix as it falls under the category of “guidance”;
- Seeks to define “vital member services” and “vital records” for clarity;
- Adds “vital” to certain headings to provide further clarification;
- Updates existing rules to clarify the acceptability of electronic formats of records preservation logs;
- Allows credit unions to destroy older, unnecessary records;
- And, clarifies the rules of engagement for contracting third parties in the service of maintaining vital records.
As part of its Deregulation Project, NCUA is seeking to update or eliminate regulations it feels fall under one of four categories: obsolete regulations, overly burdensome requirements, duplicative regulations, and guidance.
At the December 2025 NCUA Board meeting, Chairman Kyle Hauptman said of the project, “This is about smaller credit unions. It’s about making the job of running a small credit union less burdensome. We’re increasing the chance that a small credit union can not only survive but thrive for decades to come. We’re answering the call of every small credit union executive who said they felt they spent too much time working for NCUA and not enough helping their members. The credit union motto is “people helping people,” not doing compliance work because of redundant or obsolete commands from their regulator. I believe we’re right sizing that burden. As I often say, the only people who think compliance is easy…are those that don’t have to do it.”
Hauptman, who appeared appeared on stage with America’s Credit Unions CEO Scott Simpson at GAC 2026, was thanked by Simpson and attendees alike for his efforts in advancing deregulation.
For additional information, and to comment on the proposed changes, visit the NCUA website.
