NCUA Proposes Ditching Collateral for Credit Union Guarantees
Published Date: 12/29/2025
Proposed Rule
Summary
The National Credit Union Administration wants to make it easier for federally insured credit unions to act as sureties and guarantors by removing the need for segregated deposits and collateral. This change gives credit unions more freedom to create products that better serve their members. Comments on this proposal are open until February 27, 2026, so now’s the time to weigh in!
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Remove Segregated Collateral Rules
The NCUA proposes to remove paragraphs (c)(3) and (d) of Sec. 701.20 so federally insured credit unions (FICUs) would no longer need segregated deposits or the current collateral rules (including the 100% collateral category for cash and certain U.S. obligations and the 110% category for real estate and marketable securities) when acting as a surety or guarantor. The agency says this change will give FICUs greater flexibility to design products, simplify the regulatory framework, and reduce compliance burdens.
Small Credit Unions Unlikely Affected
The NCUA certified under the Regulatory Flexibility Act that the proposed rule would not have a significant economic impact on a substantial number of small credit unions and defines small credit unions as those with under $100 million in assets. The agency also states it is unlikely that small credit unions will participate in suretyship or guaranty activities and therefore are unlikely to be significantly affected.
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Key Dates
Department and Agencies
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