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Third-Party Servicing of Indirect Vehicle Loans
Plain English Summary
The NCUA Board has decided to change its rules about how credit unions can work with third parties to manage indirect vehicle loans. This change will make it easier for federally insured credit unions to operate without strict regulations, helping them save money and reduce complicated compliance processes. As a result, credit unions will be able to serve their members more effectively. Insurance agents should stay informed about these changes to better assist their clients in the auto loan market.
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The NCUA Board (Board) is issuing a final rule removing NCUA's unnecessarily prescriptive regulation regarding third-party servicing of indirect vehicle loans. This action will reduce regulatory burden and provide federally insured credit unions (FICUs) with greater operational flexibility, consistent with a principles-based supervisory approach. The intent is to reduce administrative costs and compliance complexity, enabling credit unions to serve their members more efficiently.