Federal Register #2026-16029

NCUA Final Rule Removes Prescriptive Regulations on Third-Party Servicing of Indirect Vehicle Loans

This notice announces a final rule issued by the National Credit Union Administration (NCUA), an independent federal agency overseeing federally insured credit unions. - The rule removes prescriptive federal regulations on third-party servicing of indirect vehicle loans. - Previously, credit unions were limited to purchasing indirect vehicle loans from any one servicer up to 50% of their net worth (increasing to 100% after 30 months). - These limits are now eliminated, giving credit union boards authority to set their own policies based on their size and risk profile. - No Original Equipment Manufacturers (OEMs), vendors, or specific products/services are mentioned, as this is a regulatory change, not a procurement action. - The intent is to reduce regulatory burden, lower administrative costs, and provide greater operational flexibility for credit unions. - No products or services are being requested or procured as part of this notice.

Description

The National Credit Union Administration (NCUA) Board is issuing a final rule that removes prescriptive regulations regarding third-party servicing of indirect vehicle loans. This change aims to reduce regulatory burden and provide federally insured credit unions with greater operational flexibility through a principles-based supervisory approach. The rule eliminates rigid limits on the aggregate amount of indirect loans a credit union may purchase from any one servicer, allowing credit union boards to develop their own policies. The final rule is effective September 8, 2026, and is intended to reduce administrative costs and compliance complexity, enabling credit unions to serve their members more efficiently.

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