NCUA Finalizes Changes to RegFlex

The National Credit Union Administration (NCUA) board of directors unanimously approved a final rule extending existing Regulatory Flexibility (RegFlex) provisions to all federal credit unions and eliminating the RegFlex designation program. This final rule will become effective 30 days after publication in the Federal Register.

The final RegFlex relief rule enables all federal credit unions to engage in activities permitted by the existing RegFlex rules without the need to first apply for a RegFlex designation. Specifically, the final rule allows all federal credit unions to: 

  • Make charitable contributions to charities of their choosing.
  • Accept non-member deposits, up to the greater of 20 percent of shares or $3 million, from local governmental entities or other credit unions.
  • Use a six-year time horizon (instead of three years) to partially occupy unimproved property acquired for future expansion.
  • Obtain certain exceptions to constraints on purchasing whole loans from other federally insured credit unions.
  • Enter into borrowing-repurchase transactions in which the purchased securities have maturities exceeding the maturity of the borrowing-repurchase agreement, provided the investment value does not exceed net worth and subject to certain constraints.
  • Purchase private-label commercial mortgage-related securities, subject to certain net worth constraints and safety and soundness investment criteria.
  • Invest in zero-coupon securities, subject to certain net worth and investment maturity limits.

The board also issued a policy statement removing RegFlex revocations from the list of material supervisory determinations made by the Supervisory Review Committee. 


Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News, Federal, NCUA.