DCUC Comments on NCUA Proposals to Modernize Chartering, Conversion, and Merger Regulations

WASHINGTON, DC – Today, the Defense Credit Union Council (DCUC) submitted three comment letters to the National Credit Union Administration (NCUA) in response to the agency’s fifth round of Deregulation Proposals. DCUC addressed proposed changes related to Chartering and Field of Membership for Federal Credit Unions; Conversion of Insured Credit Unions to Mutual Savings Banks; and Mergers of Insured Credit Unions into other credit unions, as well as voluntary termination or conversion of insured status. ​

DCUC appreciates the NCUA’s continued efforts to modernize and streamline its regulatory framework to reduce unnecessary compliance burdens while maintaining strong consumer protections. 
 
“Regulatory clarity and flexibility are essential to credit unions in order to best serve the financial needs of their members and communities,” said Anthony Hernandez, DCUC President/CEO. “We commend the NCUA for advancing thoughtful deregulation efforts that remove outdated requirements while preserving the safeguards that protect credit union members. These changes, when properly balanced, allow credit unions to devote more resources to service, innovation, and financial readiness.” 
 
In its letter on Chartering and Field of Membership, DCUC supported the NCUA’s proposal to rescind Interpretative Ruling and Policy Statement (IRPS) 06-1, noting that its provisions have already been incorporated into Chapter 3 of the Chartering Manual, published in Appendix B to Part 701 of the agency’s regulations. 
 
Regarding conversions to mutual savings banks, DCUC supported proposals to eliminate requirements to publish notices in newspapers, remove prescriptive formatting and font requirements for member communications, and eliminate non-binding “Voter Guidelines” from regulatory text. However, DCUC opposed the removal of formatting and font size clarifications within the NCUA’s “clear and conspicuous” standard, emphasizing that these elements provide credit unions with a consistent and reliable method to ensure compliance and transparency. 
 
Jason Stverak, DCUC Chief Advocacy Officer, adds, “Maintaining clear communication standards helps ensure that members fully understand significant changes that may impact their credit union, and as a result, reinforces trust and accountability across the entire system.” 
 
In its comments on mergers and the termination or conversion of insured status, DCUC supported the removal of specific formatting requirements for disclosures related to the loss of federal share insurance. However, DCUC did not support eliminating the NCUA’s process for seeking and publishing member feedback on proposed mergers, noting that the transparency benefits to members outweigh any administrative burden. 
 
“Member voice is a cornerstone of the credit union model,” Stverak says. “Preserving opportunities for member feedback during mergers ensures that credit unions remain accountable to the people they serve and that decisions are made with full transparency.” 
 
DCUC looks forward to continuing to engage with the NCUA on its broader Deregulation Project and remains committed to working collaboratively to advance policies that strengthen credit unions and the communities they serve. ​