NEWS: Yesterday, The League submitted three comment letters to the NCUA, telling them that we back each of the proposed regulatory changes in Round 5 of their Deregulation Project:
- We wrote in support of the NCUA’s proposal to eliminate some procedural, disclosure, and communications requirements for converting insured credit unions (including federally insured, state-chartered credit unions in Wisconsin and elsewhere) to mutual saving banks. While The League does not encourage conversions, our member credit unions told us that they appreciate how the proposed changes would simplify regulatory compliance for conversion disclosures and give credit unions more flexibility to design disclosures that are effective and clear for their members.
- We offered support for the NCUA proposal to retain the core disclosure and notification requirements when a credit union’s members vote on a decision to merge or terminate federal share insurance coverage and convert to private insurance, but eliminate prescriptive requirements associated with those disclosures. The proposed changes would give credit unions greater flexibility to design effective communications, while still ensuring that members receive clear and prominent notice of a proposed termination of share federal insurance. Wisconsin law requires state-chartered credit unions to maintain federal share insurance, so this change would have limited impact here. Nevertheless, we backed the proposal as a way to streamline NCUA rules and reduce compliance burdens in general. As one credit union put it: “Even where the rule does not directly apply to us, a more principle-based, less burdensome regulatory framework promotes a healthier and more efficient credit union system overall.”
- We wrote to express our support for the NCUA proposal to rescind a 2006 Interpretative Ruling and Policy Statement (IRPS) that limited underserved area additions to multiple common bond fields of membership for federal credit unions (FCUs). The IRPS is no longer needed because the current field of membership requirements are in the NCUA’s Chartering Manual. This change would apply only to FCUs, not state-chartered credit unions. “Although only two Wisconsin-based credit unions are FCUs,” we wrote, “the League’s members as a whole back this proposal because it would advance important regulatory principles that benefit the broader credit union ecosystem.”
Help us comment on Round 6
The deadline for commenting on the next round of the Deregulation Project is coming up. For details on the six proposals in this upcoming round, please see this League Comment Call.
Please email Paul Guttormsson with your thoughts on Round 6 by April 20, 2026, so that our comment letter (which is due April 27, 2026) can reflect your positions.
Compliance Roundtable – September 16 (In-Person)
Join members of The League’s compliance team as they lead a discussion on the latest changes in regulations and need to know information to keep your credit union in compliance. You can find more information or register on our website.