NASCUS Final Rule Summary: Chartering and Field of Membership for Federal Credit Unions Interpretive Ruling and Policy Statement 10-1
August 6, 2026
The National Credit Union Administration (NCUA) has issued a final rule rescinding Interpretive Ruling and Policy Statement 10–1 Chartering and Field of Membership for Federal Credit Unions (IRPS 10-1). IRPS 10-1 clarified policies related to community chartering for federal credit unions (FCUs). NCUA is rescinding IRS 10-1 as redundant as everything contained within IRPS 10-1 is also contained within the NCUA’s FCU Chartering Manual in the agency’s Rules and Regulations.
IRPS 10-1 is rescinded effective September 8, 2026.
Summary of Final Rule
In 2010, NCUA issued IRPS 10–1 clarifying policies related to community chartering for FCUs. At the same time, NCUA established its Chartering Manual in § 701, Appendix B as a consolidated source for FCU chartering, conversion, and FOM policies.
NCUA believes rescinding IRPS 10-1 will reduce regulatory burden by creating a single source for chartering and FOM requirements for FCUs. Rescission of the IRPS does not change any substantive requirements or otherwise amend § 701.1.
Part 701 Appendix B – FCU Chartering and FOM Manual
As noted, NCUA’s rescission of IRPS 10-1 does not change any of the existing policies, rules or regulations related to FCU FOM. Those policies and rules remain codified in Part 701 Appendix B.
Appendix B articulates NCUA’s 5 goals for chartering and FOM expansion:
- To encourage the formation of credit unions;
- To uphold the provisions of the Federal Credit Union Act;
- To promote thrift and credit extension;
- To promote credit union safety and soundness; and
- To make quality credit union service available to all eligible persons.
The Chartering Manual/Appendix B sets out the three types of FCU charters allowed by statute:
- single common bond (occupational and associational)
- multiple common bond (more than one group each having a common bond of occupation or association)
- community
Other information in Appendix B includes the requirements for chartering a new FCU, the application process, and the special rules for FCUs serving low-income groups.
NASCUS Summary: Interagency Rescission of the Interagency Statement of Special Purpose Credit Programs Under the Equal Credit Opportunity Act and Regulation B
August 2026
FDIC, NCUA, OCC, CFPB, HUD, DOJ and FHFA issued a notice to inform the public of the rescission of the “Interagency Statement of Special Purpose Credit Programs Under the Equal Credit Opportunity Act and Regulation B” dated February 22, 2022. The agencies are rescinding the Interagency Statement to make clear that (i) creditors may not discriminate against borrowers based on prohibited characteristics and (2) creditors should not rely upon the Interagency Statement or other related issuances going forward.
The statement was effective as of August 25, 2026 and can be found here.
Summary
The federal agencies are revisiting prior guidance that may have sanctioned or encouraged participation in discriminatory programs/activities. The 2022 Interagency Statement of Special Purpose Credit Programs under the ECOA allowed creditors to offer special purpose credit programs that “meet the credit needs of specified classes of persons” and gave assurances to participants that were uncertain about the permissibility of such credit programs. The 2022 Interagency Statement has been amended and the earlier version of Regulation B that permitted creditors implement lending programs based on the race, color, national origin, or sex of the applicant (under certain circumstances) is no longer in effect.
According to the federal agencies, earlier interpretations pertaining to these programs cannot be reconciled with the statutory text of the Equal Credit Opportunity Act (ECOA). All special purpose credit programs must comply with the ECOA/Regulation B and the FHA. The federal agencies conclude that Federal law does not authorize any generalized remedial “equity” initiatives absent specific cases of unlawful discrimination. As a result of these changes, the agencies share the view that rescission of the 2022 Interagency Statement is necessary to ensure that creditors do not rely on it to engage in discriminatory activities that are inconsistent with the ECOA/Regulation B and to the extent applicable, the FHA.
NASCUS Final Rule Summary: Notice of Termination of Excess Insurance Coverage
August 2026
On August 6, 2026, the NCUA Board adopted a final rule amending its regulation governing notice requirements related to the termination of excess share insurance coverage under 12 CFR Part 741.5.
The Final Rule can be read here: Termination of Excess Insurance Coverage.
The final rule is effective on September 8, 2026.
Summary
On January 28, 2026, the NCUA Board published a proposed rule to amend § 741.5 to provide flexibility and reduce regulatory burden.
The proposed change, which has now been finalized, removed the specific requirement that members be notified 30 days in advance of the termination of excess share insurance coverage. Credit unions are still required to notify members prior to the termination of the coverage, but without a defined advance notice period.
The final rule stated that the Board received 18 comments regarding the proposal. There were three different views that the Board described:
- Approximately two-thirds supported focusing on increased flexibility, reduced burden, and better alignment with state law and contractual obligations.
- Approximately one-third opposed, expressing concern that simply requiring notice “before” termination could result in insufficient or inconsistent notice.
- One commenter suggested retaining shorter notice periods, but the Board declined stating any prescribed timeframe could still conflict with state law or contractual requirements.
The Board adopted the proposed rule without substantive change. The final rule includes a minor language change of the phrase “prior to” which was changed to “before” within § 741.5.
NASCUS submitted comments on the proposal and those can be found here: Termination of Excess Insurance Coverage.
NASCUS Final Rule Summary: Credit Union Service Contracts
August 2026
On August 6, 2026, the NCUA Board adopted a final rule by revising its regulations governing the organization of federal credit unions (FCUs) under § 701.26.
The Final Rule can be read here: Credit Union Service Contracts.
The final rule is effective on September 8, 2026.
Summary
On February 25, 2026, the NCUA Board published a proposed rule to remove 12 CFR 701.26 which governs the organization and operation of an FCU’s authority to enter into contracts for assets or services related to daily operations.
The Board stated that FCU authority to enter into contracts for operational services was inherent in its charter and general powers under the FCU Act. The Board considered the regulation unnecessary, as the requirement that such agreements be in writing is a standard business practice that exists regardless of whether it is referenced in regulations. The Board also noted that the examination notice provision was unnecessary, as NCUA’s examination authority is generally limited to the products, services, and operations of the credit union rather than those of its vendors.
The final rule states that the Board received 12 comments regarding the proposal and, after consideration of the comments, adopted the proposal to remove § 701.26, while also adopting one change to Part 721.
The original proposal asked for comments on whether Part 721 should be amended to explicitly recognize an FCU’s authority in joint operations and other resource sharing situations, to act as a representative of another credit union or organization. The final rule states that comments on the question were mixed. After considering the comments the Board amended Part 721 to expressly recognize this authority. However, the final rule goes on to state that the amendment is limited to representative activities, and does not authorize an FCU to provide any other services or activities to another credit union.
NASCUS Final Rule Summary: Disclosure of Share Insurance for Non-Member Shares
August 2026
On August 6, 2026, the NCUA Board adopted a final rule to remove 12 CFR § 741.10 which applied to state credit unions that are allowed to accept non-member deposits under state law, excluding deposits from other credit unions, public units, and non-member deposits in Low-Income Credit Unions (LICUs).
The Final Rule can be read here: Disclosure of Share Insurance for Non-Member Shares.
The final rule is effective on September 8, 2026.
Summary
On January 28, 2026, the NCUA Board published a proposed rule to remove 12 CFR § 741.10. Part 741of the NCUA’s regulations implements Title II of the Federal Credit Union Act (FCU), which governs the National Credit Union Share Insurance Fund (SIF). It prescribes requirements that all federally insured credit unions (FICUs) must satisfy to obtain and maintain federal share insurance, as well as payment of insurance premiums and the capitalization of deposits with the SIF.
Part 741.10 required Federally Insured State-Chartered Credit Unions (FISCUs) that are permitted by state law to accept non-member shares or deposits to:
- Identify non-member accounts as such on required reports for insurance purposes.
- Notify non-member share and deposit holders in writing that their accounts are not insured by the SIF, and
- Notify any future non-member share and deposit fund holders in writing as they open accounts.
The Board viewed Part 741.10 as unnecessary and redundant because the same or similar disclosure obligations are already imposed on FISCUs through their contractual SIF agreement and reporting obligations.
The final rule stated that the Board received 12 comments regarding the proposal, and after consideration, the Board decided to adopt the proposal without change and remove 12 CFR § 741.10 in its entirety. NASCUS submitted comments related to this proposal and those can be found here: Disclosure of Share Insurance.
NASCUS Final Rule Summary: Eligible Obligations
August 2026
On August 6, 2026, the NCUA Board adopted a final rule amending its regulation governing the purchase, sale, and pledge of eligible obligations, under § 701.23, and by § 741.8, for federally insured state-chartered credit unions (FISCUs).
The Final Rule can be read here: Eligible Obligations.
The final rule is effective on September 8, 2026.
Summary
On February 25, 2026, the NCUA Board published a proposed rule to streamline § 701.23, its regulation governing the purchase, sale, and pledge of eligible obligations, by removing prescriptive policy requirements and a detailed conflicts of interest and compensation framework.
In the original proposal the Board determined that several provisions of § 701.23 were not statutorily required and believed it imposed unnecessary burden. The Board proposed to amend § 701.23 by revising paragraphs (b)(6), (c), and (d) and removing paragraph (g). Specific changes, which have now been finalized, included:
- Paragraphs (b)(6), (c), and (d) would be revised to remove the prescriptive lists of items that must be addressed in an FCU’s written policies for the purchase, sale, and pledge of eligible obligations. FCUs would still be required to maintain written policies, but would no longer be subject to a mandated framework, allowing boards to exercise their own business judgment.
- Paragraph (g) would be removed in its entirety. The Board considered this framework duplicative and unnecessary as FCUs are already governed by broader conflicts of interest provisions in their bylaws and by the fiduciary duties of their officials.
- Part 746 would be updated to reflect the redesignation of current paragraph (h) as paragraph (g) following the removal of paragraph (g). No substantive change is intended.
The final rule stated that the Board received 15 comments regarding the proposal, and after consideration, the Board decided to adopt the proposal without change. NASCUS submitted comments on the proposal and those can be found here: Eligible Obligations.
NASCUS Final Rule: Federal Corporate Credit Union Chartering
August 2026
On August 6, 2026, the NCUA Board adopted a final rule rescinding its Interpretive Ruling and Policy Statement (IRPS) 11-02 which addressed chartering corporate credit unions.
The Final Rule can be read here: Corporate Credit Unions.
The final rule is effective on September 8, 2026.
Summary
On January 14, 2026, the NCUA Board published a proposed rule to rescind IRPS 11-02 because the Board viewed it as no longer necessary based on the belief that Federal Credit Unions (FCUs) should be able to rely on the Chartering Manual for NCUA guidance on corporate FCU chartering, and the rescinding of the IRPS would reduce redundancy and eliminate potential confusion.
The Board stated that in conjunction with the removing of IRPS 11-02, NCUA also intends to make technical updates to the Chartering Manual, such as, updated terminology related to the responsible office and language around electronic submission.
The final rule stated that the Board received 10 public comments regarding the proposal, and after consideration, the Board decided to adopt the proposal without change.
NASCUS Final Rule Summary: Limits on Loans to Other Credit Unions
August 2026
On August 6, 2026, the NCUA Board adopted a final rule relating to loans to other credit unions under § 701.25 for federally insured credit unions (FICUs), and by § 741.227 for federally insured state-chartered credit unions (FISCUs).
The Final Rule can be read here: Limits on Loans to Other Credit Unions
The final rule is effective on September 8, 2026.
Summary
On December 29, 2025, the NCUA Board published a proposed rule to remove the documentation requirements codified in §701.25(b). The change aimed to reduce regulatory burden and provide credit unions with greater flexibility in designing products to meet members’ needs.
The proposed changes, which have now been finalized, removed § 701.25(b), eliminating the requirements for FICUs to:
- Obtain board approval for all loans to other credit unions.
- Adopt written policies specifying aggregate limits on such loans.
The final rule retains:
- Statutory limits and other provisions in § 701.25 still apply (e.g., aggregate lending limits and eligibility requirements).
- FISCUs will look to state law for board approval and policy requirements.
The final rule stated that 10 public comments were received and commenters were unanimous in their support of the proposed rule. The Board stated the proposal was adopted without change. NASCUS submitted comments on the proposal and those can be found here: Limits on Loans to Other Credit Unions.
It should be noted that the final rule addresses NASCUS’s recommendation within our comment letter that NCUA undertake a structural re-organization of its rules and regulations to consolidate and separate all of its deposit-insurance related provisions into a clear, self-contained sub-chapter that is distinct from FCU charter/operations rules. NCUA responded that the suggestion was outside of the scope of the rulemaking, and the rule was not revised in response to the comment. Still, it’s great to see that the NASCUS membership voice is being heard by the Board.
NASCUS Final Rule Summary: Organization and Operation of Federal Credit Unions
August 2026
On August 6, 2026, the NCUA Board adopted a final rule rescinding its Interpretive Ruling and Policy Statement (IRPS) 06-1 which addressed chartering and field of membership guidance.
The Final Rule can be read here: Chartering and Field of Membership.
The final rule is effective on September 8, 2026.
Summary
On February 11, 2026, the NCUA Board published a proposed rule to rescind IRPS 06-1 which the Board viewed as no longer necessary noting that Chartering Manual now contains the requirements contained within IRPS 06-1, and the rescinding of the IRPS would reduce redundancy and eliminate potential confusion.
In 2006, the NCUA Board issued IRPS 06-1 as a final rule amending Federal Credit Union (FCU) field of membership regulations to limit underserved area additions to multiple common bond credit unions and to revise facility requirements applicable to underserved areas.
In 2010, NCUA incorporated relevant policies and procedures for FCUs into the Chartering and Field of Membership Manual (Part 701 Appendix B), which now serves as the primary source of governing guidance for FCU chartering and membership determinations.
The final rule stated that the Board received 22 public comments regarding the proposal, and after consideration, the Board adopted the proposal without change.
NASCUS Final Rule Summary: Service to Underserved Areas
August 2026
On August 6, 2026, the NCUA Board adopted a final rule rescinding its Interpretive Ruling and Policy Statement (IRPS) 08-2 which addressed service to underserved areas.
The Final Rule can be read here: Service to Underserved Areas.
The final rule is effective on September 8, 2026.
Summary
On January 14, 2026, the NCUA Board published a proposed rule to rescind IRPS 08-2, which the Board viewed as no longer necessary. The Board stated that rescinding the IRPS would reduce regulatory burden by reducing the number of reference sources that federal credit unions (FCUs) must review to comply with applicable field-of-membership (FOM) requirements.
IRPS 08-2 provided interpretive guidance governing how credit unions may serve underserved areas, including through the expansion of FOM authority. The policy statement outlined the eligibility criteria and parameters for credit unions that seek to demonstrate service to communities that lack adequate access to financial services. NCUA incorporated the policy originally defined in IRPS 08-2 into the Chartering Manual in 2010, which now serves as the source for field-of-membership policies and procedures.
The final rule stated that the Board received 13 comments regarding the proposal, and after consideration, the Board decided to adopt the proposal without change.
NASCUS Final Rule Summary: Surety & Guarantor Requirements
August 2026
On August 6, 2026, the NCUA Board adopted a final rule removing the segregated deposit and collateral requirements when federally insured credit unions (FICUs) act as a surety or guarantor under § 701.20, and through § 741.221, for federally insured state-chartered credit unions (FISCUs).
The Final Rule can be read here: Suretyship and Guaranty; Segregated Deposit and Collateral.
The final rule is effective on September 8, 2026.
Summary
On December 29, 2025, the NCUA Board published a proposed rule to remove the segregated deposit and collateral requirements under §701.20 when federally insured credit unions (FICUs) act as a surety or guarantor. The change aimed to reduce regulatory burden and provide credit unions with greater flexibility in designing products to meet members’ needs.
The proposed changes, which have now been finalized, remove paragraphs (c)(3) and (d) of § 701.20, eliminating:
- Mandatory segregated deposit.
- Maintaining collateral requirements (100% for cash/government obligations; 110% for real estate/securities).
The final rule retains two existing requirements to ensure safety and soundness of surety and guaranty:
- Fixed amount/duration limits.
- Creation of permissible loans under applicable lending regulations.
The final rule stated that the Board received 15 comments regarding the proposal, and after consideration, the Board decided to adopt the proposal without change. NASCUS submitted comments on the proposal and those can be found here: Surety and Guaranty Comment Letter.
NASCUS Final Rule Summary
Third-Party Servicing of Indirect Vehicle Loans
August 2026
On August 6, 2026, the NCUA Board adopted a final rule removing §§ 701.21(h) and 741.203(c), stating that the regulations governing third-party servicing of indirect vehicle loans are unnecessarily prescriptive.
The Final Rule can be read here: Third-Party Servicing of Indirect Vehicle Loans.
The final rule is effective on September 8, 2026.
Summary
On March 25, 2026, the NCUA Board published a proposed rule to remove portions of Part 701. The proposed changes, which have now been finalized, included removing § 701.21(h), which limited the aggregate amount of indirect vehicle loans serviced by any one third-party servicer to:
- 50 percent of a credit union’s net worth for the first 30 months; and
- 100 percent of net worth thereafter.
The proposed rule also included provisions related to waiver requests and appeal processes tied to the limits.
The proposal stated it would also make an amendment to § 746.201(c) by removing the citation to § 701.21(h)(3), which identified the appeal right tied to waiver determinations under the existing rule.
The Board proposed to remove §§ 701.21(h) and 741.203(c) in their entirety, eliminating these concentration limits and associated administrative requirements.
The final rule stated that the Board received 14 comments (all supported) regarding the proposal, and after consideration, the Board decided to adopt the proposal without change. NASCUS submitted comments, and those can be found here: Third-Party Servicing of Indirect Vehicle Loans.