CUNA Urges NCUA to Withdraw or Revise CUSO Proposal
The trade group said it does not support NCUA’s latest effort on the regulation of CUSOs and recommends the agency withdraw it or substantially revise the proposal.
“NCUA already has a number of options it can employ to ensure credit unions do not get into trouble by participating in a CUSO without having to adopt the CUSO oversight provisions in the proposal,” wrote Mary Dunn, CUNA senior vice president and deputy general counsel, in a Sept. 13 letter to the regulator.
“Credit unions must already engage in reasonable due diligence regarding their CUSOs and examiners should check to make certain they do so and that they are receiving the information and accountability from their CUSOs that they need to make sure there are no material problems,” Dunn said.
Rather than adopt the CUSO rule amendments, Dunn said the NCUA “should work with credit unions to help ensure they are fulfilling due diligence requirements and work with examiners to ensure they are vigilant to any problems by using existing supervisory authority.”