ALEXANDRIA, Va. – The NCUA today added two new permissible CUSO activity categories-credit card loan origination and payroll processing services-and broadened the reach of two service categories.
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.
For federally insured state chartered credit unions in a state where a state regulator has examination authority over that credit union's CUSO, the state regulator can apply to the NCUA to exempt its state-chartered credit unions from the provision regarding access to records. If NCUA has a concern about a credit union's CUSO it can contact the state regulator and then join that state regulator in examining the CUSO.
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The new regulations clarify that CUSOs may buy and sell participations in loans they are currently authorized to originate.
The board's vote was unanimous.
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