WASHINGTON, DC (May 20, 2026) |
The Defense Credit Union Council (DCUC) has filed an official comment letter to the National Credit Union Administration (NCUA) supporting its proposed rulemaking to remove regulatory provisions related to third-party servicing of indirect vehicle loans. The proposal would eliminate prescriptive lending limits and provide federal credit unions with greater flexibility to establish lending policies appropriately scaled to their indirect lending programs. Similar relief would also apply to state-chartered credit unions.
DCUC expressed support for the NCUA’s principles-based supervisory approach, noting that credit union boards are best positioned to manage indirect lending programs through sound underwriting, concentration monitoring, and vendor oversight practices, while maintaining safety and soundness protections through the examination process.
“DCUC supports the NCUA’s proposed rulemaking. The proposal to remove current paragraph (h) from § 701.21 would provide federal credit unions with greater flexibility to develop lending policies appropriately scaled to their purchases of indirect vehicle loans serviced by third parties,” wrote Jason Stverak, DCUC Chief Advocacy Officer.
DCUC also supports removing corresponding provisions for federally insured, state-chartered credit unions to promote regulatory consistency while preserving appropriate supervisory oversight.
“We appreciate the NCUA Board’s continued efforts to modernize outdated and overly prescriptive regulatory requirements while maintaining strong supervisory standards,” says Anthony Hernandez, DCUC President/CEO, Ret. U.S. Air Force Colonel. “Providing credit unions with appropriate operational flexibility allows them to better serve their members, responsibly manage lending programs, and remain competitive in a rapidly evolving financial environment.”