ALEXANDRIA, VA — The National Credit Union Administration (NCUA) announced Tuesday that it is proposing another round of regulatory changes as part of its ongoing Deregulation Project.

The proposal is the seventh set of changes under the initiative, which aims to review and update federal regulations affecting credit unions. According to the agency, the effort is meant to ensure rules focus on safety, financial stability, and resilience while removing outdated or unnecessary requirements.

The new proposal centers on changes to federal regulations governing how credit unions preserve and manage important records.

Under the proposal, the NCUA Board would remove two appendices from federal regulations that currently provide record retention and disaster preparedness guidance. The agency said these sections are intended as guidance rather than strict requirements, and removing them from the regulations could reduce confusion about what is legally required.

The proposal also includes several clarifications and updates, including:

• Defining “vital member services” and “vital records.” The rule currently provides examples but does not formally define the terms.
• Clarifying that the rule applies specifically to vital records, not all records held by a credit union.
• Allowing records preservation logs to be kept electronically, giving credit unions more flexibility in how they manage documentation.
• Allowing older versions of records to be destroyed, unless another law requires they be kept.
• Clarifying oversight expectations when credit unions use third-party companies to store or manage important records.

NCUA officials said the proposed updates are intended to reduce unnecessary administrative burden while maintaining oversight and safety standards.

The agency is encouraging credit unions, financial professionals, and members of the public to review the proposed rule and submit comments through the Federal Rulemaking Portal.

More information about the proposal and the NCUA Deregulation Project is available on the NCUA website.