CUSO Changes: Mum's the Word at CUs
With much more at stake, it is no surprise that credit union service organizations are sounding the alarm louder than credit unions regarding an NCUA proposal that would alter how CUSO relationships are regulated.
Credit Union Times contacted several CUs to get their take on how an amendment to Part 712 of the CUSO rule would require all CUSOs to file financial reports directly with the NCUA and the appropriate state supervisory authority. That requirement would apply to federally insured state-chartered credit unions as well.
Kent Moon, president/CEO of Member Business Lending LLC, is more willing to work with the NCUA and considers the agency “an asset, an ally” to the South Jordan, Utah-based CUSO. Still, he too, questioned the NCUA’s intentions especially in what he sees as a heightened environment of government spending backlash and criticism of the regulator’s own budget.
Instead of the NCUA mandating new edicts, Moon suggested the agency come up with a memorandum of understanding between it and other regulators to collaborate on duties in an effort to reduce oversight costs.