ALEXANDRIA, Va. -- NAFCU, CUNA and NASCUS have offered their suggestions and criticisms on a proposed NCUA rule that would include adding credit card loan origination and payroll processing services to the list of permissible CUSO activities.
NCUA sought feedback on the proposal that would also lift a restriction that currently only allows FCUs to invest in or lend to CUSOs that primarily provide checking, currency and electronic transaction services to members so that the same services can be offered to persons within the entire field of membership.
NAFCU suggested expanding the list of CUSO activities to all types of lending, real estate settlement services, employees leasing services and support, purchase and servicing of nonperforming loans, business counseling and referral and processing of loan applications for members that have been turned down
Among its suggestions, CUNA said it is against requiring all FCUs with a net worth of less than 5% to seek prior approval from NCUA to recapitalize an insolvent CUSO. Credit unions with 4%-5% net worth should only be required to provide prior notice to the agency, which NCUA could pursue if there are concerns, CUNA said.
NASCUS encouraged NCUA to work with state regulators to oversee CUSO issues, including access to books and records, "without additional regulatory burden" to federally insured, state-chartered credit unions.
--msamaad@cutimes.com
