NCUA proposes 4 rule rescissions addressing nondiscrimination, service to underserved areas, more

One rule and three interpretive rulings the agency considers to be obsolete and duplicative are slated for rescission in its third round of its deregulation proposals, it said Tuesday.

The National Credit Union Administration (NCUA) last year announced a regulatory review that also includes weeding out or revising regulations that are obsolete, burdensome, duplicative, or guidance. The four proposals announced Tuesday would remove the following:

• Nondiscrimination requirements: The NCUA proposes to remove in its entirety 12 CFR 701.31, which describes requirements under the Equal Credit Opportunity Act (ECOA) and Federal Housing Act (FHA). It notes these statutes are implemented under regulations issued by the Consumer Financial Protection Bureau (CFPB) and Department and Housing and Urban Development (HUD), respectively, and apply to federal credit unions. The NCUA categorizes this rule as obsolete, overly burdensome, duplicative, and guidance.
• Underserved areas: The agency proposes to rescind Interpretive Ruling and Policy Statement (IRPS) 08-2, “Service to Underserved Areas.” It calls this IRPS obsolete and duplicative, noting its removal would eliminate a redundant standard that is addressed in Chapter 3 of the agency’s chartering manual (Part 701 of the agency’s rules and regulations).
• Community chartering: The NCUA plans to rescind Interpretive Ruling and Policy Statement (IRPS) 10-1, “Community Chartering Policies.” It calls this ruling obsolete and duplicative, as the associated statutory requirements are addressed in Appendix B to the chartering manual.
• Corporate credit unions: Also slated for rescission is Interpretive Ruling and Policy Statement (IRPS) 11-2, “Federal Corporate Credit Union Chartering.” Also described as obsolete and duplicative, the guidance and procedure on federal corporate credit union chartering can also be found in the agency’s chartering manual, the agency said.

All four proposed rescissions are slated for publication in the Federal Register Wednesday, each with a 60-day comment period attached.

NCUA Announces Third Round of Deregulation Proposals