ALEXANDRIA, Va. — At its board meeting yesterday, NCUA issued proposed amendments to the CUSO rule Part 712 to what it describes as a clarification and enhancement of CUSO operations.
The proposal would add two new permissible CUSO activity categories–credit card loan origination and payroll processing services–and broaden the reach of two service categories to include those eligible for credit union membership, and add new examples of permissible CUSO activities.
Through a companion amendment to Part 741, the proposal would also expand the scope of the CUSO rule by extending certain provisions to federally insured, state-chartered credit unions to ensure that regulators have access to books and records and that CUSOs operate as separate entities. Additionally, the proposal clarifies that CUSOs may buy and sell participations in loans they are currently authorized to originate, according to NCUA.
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CUNA President/CEO Dan Mica said the association has concerns about extending federal regulators' access to records at federally insured state credit union CUSOs and to allow state regulators to inspect the books and records of a federal credit union's CUSO if a state chartered credit union also participates in that CUSO.
Mica said CUNA is looking forward to working with NCUA on the proposed amendments.
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