About this episode

The episode discusses the NCUA's proposal to streamline rules regarding the purchase, sale, and pledge of eligible obligations for credit unions.

www.marktreichel.com https://www.linkedin.com/in/mark-treichel/ NCUA is proposing to streamline its rule on the purchase, sale, and pledge of eligible obligations (12 CFR 701.23). What NCUA is proposing: Remove the prescriptive lists of items that FCUs must address in their written purchase, sale, and pledge policies Remove the detailed code of conduct in paragraph (g) governing conflicts of interest and compensation tied to these transactions Make a conforming redesignation (current 701.23(h) becomes 701.23(g)) and update the cross-reference in the appeals rule at 12 CFR 746.201(c) Comments are due April 27, 2026 Why NCUA is making the change: The current one-size-fits-all framework is viewed as unduly burdensome, especially for smaller FCUs The FCU Act requires NCUA to issue rules in this area but does not require a detailed framework for internal credit union policies An FCU's board is in the best position to scale policies to its own activities and risk profile The existing compensation prohibition, with a narrow list of exceptions, is seen as inflexible and may hinder legitimate incentive structures FCUs are already governed by broader conflict of interest provisions in…

Topics covered

• NCUA proposal
• eligible obligations
• credit union policies
• conflicts of interest
• financial regulations

Keywords

• NCUA
• eligible obligations
• credit union
• financial regulations
• conflict of interest
• policy changes
• FCU Act

Mentioned in this episode

Organizations: NCUA, CFPB, FDIC, OCC, FFIEC, FCU, FCU Act

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