The recent changes in NCUA leadership with new NCUA Chairman John Crews at the reins have not affected the administration’s efforts at deregulation. Earlier today, the National Credit Union Administration announced its fourteenth round of deregulation proposals as it continues to make efforts towards eliminating cumbersome and unnecessary regulation. As part of the process, NCUA is seeking public comment on the proposed changes, which affect commercial lending, the Paycheck Protection Program (PPP), and statutory liens.
The first of the proposed changes would be to remove 12 CFR 723.9, a provision which was adopted in 2016 for commercial lending. Per the NCUA, “the provision has served its purpose and is no longer necessary. Removing it would reduce regulatory complexity and improve the clarity of NCUA’s regulations.”
The second change makes permanent the regulatory treatment of PPP loans in place since April 2020. The third amends the language of 12 CFR 701.39(a)(1) to remove duplicative language since “credit unions are already responsible for identifying and complying with applicable laws when exercising their statutory lien authority.”
All the proposed changes can be found on the NCUA website through their Deregulation Project page. Since launching in 2025, the project has been focused on removing or amending current regulations that the NCUA has deemed to be obsolete, duplicative, overly burdensome, or guidance within regulation. According to the site, 37 total items have been addressed with 12 finalized rules to date.
