The NCUA Board unanimously approved a proposed rule to simplify share insurance regulations.

The proposed changes include:

• Establishing a trust accounts category, providing for coverage by the National Credit Union Share Insurance Fund of funds in both revocable and irrevocable trusts deposited at federally insured credit unions in the accounts of members “or those otherwise eligible to maintain insured accounts.”
• Providing for consistent share insurance treatment for all mortgage servicing account balances held to satisfy principal and interest obligations to a lender.
• Include more flexible record keeping requirements to explicitly allow the NCUA to look to records held in the normal course of business that are maintained by parties other than federally insured credit unions and their members.

The NCUA Board also unanimously approved a proposed rule to reduce employment barriers through implementation of the Fair Hiring Act which was passed by Congress as part of the National Defense Authorization Act. The rule aims to expand employment opportunities for those with a previous minor offense or older criminal offense. The proposal would add a new section to the NCUA’s rules that incorporates the agency’s Second Chance Interpretive Ruling and Policy Statement issued in 2019.

The Board also received a briefing on cybersecurity trends and the vulnerabilities of third-party vendors. Credit unions were encouraged to review their vendor relationships and strengthen cybersecurity measures to mitigate potential risks.