CUSO Regs Readied by the NCUA
When the NCUA issues its proposed regulation of credit union service organizations on July 21, it will be an attempt by the agency to keep a closer eye on organizations whose role has grown and therefore expose credit unions to greater risk.
According to sources, the agency plans to propose a rule that includes further limiting investments for a credit union deemed undercapitalized, a requirement that CUSOs file financial reports with the NCUA and state regulators, and a requirement that credit unions do greater due diligence before deciding to purchase loans through a CUSO.
She said this would enable the agency to “properly identify and mitigate risks inherent to, or introduced by, vendor products for federally insured institutions.”
In the meantime, the agency is using its existing powers and partnering with others.