The National Credit Union Administration has launched the eighth round of proposed regulatory changes under its Deregulation Project and requested comments on a proposal to eliminate requirements in the Code of Federal Regulations that apply to third-party servicing of indirect vehicle loans. The central change would remove defined limits on federally insured credit unions’ ability to purchase or participate in indirect auto loans serviced by a third party. The proposal would do this by deleting 12 CFR § 701.21(h) and 12 CFR § 741.203(c). NCUA framed the change as reducing regulatory burden and giving credit unions and their boards greater flexibility to determine appropriate volumes of purchased indirect vehicle loans serviced by third parties based on institution size, transaction complexity, and board risk tolerance. Stakeholders are invited to review the notice of proposed rulemaking and submit comments.
National Credit Union Administration 2026-03-24
National Credit Union Administration consults on removing limits for third-party serviced indirect auto loan purchases
The National Credit Union Administration has proposed eliminating certain Code of Federal Regulations requirements related to third-party servicing of indirect vehicle loans. This change would remove limits on federally insured credit unions' ability to purchase or participate in these loans, aiming to reduce regulatory burden and increase flexibility. Stakeholders are encouraged to review and comment on the proposal.