WASHNGTON — Like so many warranty disclaimers, NCUA has said credit unions can use CUSO loan experts but certain restrictions apply.
A credit union can use a CUSO to screen applications and process member business loans, as long as the arrangement is structured to avoid a conflict of interest, according to an NCUA opinion.
The credit union must see to it that the CUSO "is independent as to each transaction," NCUA Associate General Counsel Sheila A. Albin wrote in a May 1 letter to James E. Forney, the superintendent of the credit union division of the Iowa Department of Commerce.
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