2026-05797Proposed RuleWallet

Vehicle Loans Lightened: Credit Unions Ditch the Hassle

Published Date: 3/25/2026

Proposed Rule

Summary

The NCUA wants to make it easier for credit unions to use third-party companies to handle indirect vehicle loans by cutting some complicated rules. This change will save money and reduce paperwork, helping credit unions serve their members faster and better. If you have thoughts, speak up by May 26, 2026!

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Removal of Servicer Concentration Limits

The rule would remove the current limits that cap a credit union's purchases of indirect vehicle loans from any one servicer at 50% of the credit union's net worth, and the later 100% of net worth limit that applies after 30 months with a servicer. If adopted, credit unions would no longer be subject to these specific 50% and 100% net worth concentration caps.

Elimination of Waiver and State Concurrence Steps

The proposal would remove the rule that requires state-chartered, federally insured credit unions to notify their state supervisory authority before seeking a waiver, and the requirement that a Regional Director not grant a waiver unless the appropriate state official concurs. It would also remove the rule tying the 45-day Regional Director response period to receipt of state concurrence.

Boards Keep Oversight; NCUA Examinations Continue

Even if the prescriptive rules are removed, credit union boards must still adopt policies and procedures to protect safety and soundness, and the NCUA will continue to monitor credit unions' purchases of indirect vehicle loans serviced by third parties through the examination process. The Board states it will use examinations to oversee these activities.

Small Credit Unions: No Significant Impact Finding

The NCUA certifies that the proposed rule would not have a significant economic impact on a substantial number of small credit unions, where the agency defines small credit unions as those having under $100 million in assets. The Board states it considered potential economic impacts on small credit unions in reaching this certification.

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Key Dates

Published Date
Comments Due
3/25/2026
5/26/2026

Department and Agencies

Department
Independent Agency
Agency
National Credit Union Administration
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