NCUA's Metsger Supports CUSO Data Gathering, Questions Details: On-Site at NCUA
ALEXANDRIA, Va. — NCUA Board Member Rick Metsger told Credit Union Times on Tuesday he supports the intent of a proposed rule that would allow the NCUA to collect financial information about CUSOs to protect against losses to the NCUSIF.
However, Metsger said he has concerns about the cost of supervising CUSOs, which has been estimated at $1 million to develop the program and $500,000 per year to maintain.
In an interview at the agency’s suburban D.C. headquarters, the newest board member said he’s optimistic the program’s original cost projections will be lowered when the final rule is approved.
“From a pragmatic and a fiscal standpoint, I don’t see it being wise to say we’re going to hire a bunch of people to go look at everyone’s books when probably the overwhelming majority of CUSOs do not present a pressure to the share insurance fund,” he said.
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Metsger also said he’s reviewed public comments on the rule, and said some made an excellent point that CUSO proprietary information should be safeguarded.
“What I’m working on now is how we can obtain the info that’s vital—that is, to know what the risks are—and address the legitimate concerns to make sure important proprietary information isn’t revealed,” he said. “I think there’s a way to do that and we’re making progress on that.”
As for when the final rule will be approved, Metsger said Chairman Debbie Matz will determine the timing, but added it’s possible the final rule will come by the end of the year.
Metsger was sworn into office on the NCUA board on Aug. 23. He fills the seat on the three-seat panel vacated by Gigi Hyland approximately one year ago.