When NCUA Chairman Debbie Matz spoke at a December Senatehearing on new regulations on natural person credit union riskconcentrations, she pointed out that the regulator is also lookinginto performing its own exams of third-party vendors that provideservices to NCUSIF-backed credit unions.

Matz said what's in place now “presents risks such as threats tocredit risk, security of systems, availability and integrity ofsystems, and confidentiality of information.” Credit unionscurrently have $1.3 billion invested in CUSOs and approximately 33%of all credit unions reported using CUSO services in 2010, she toldthe Senate Committee on Banking, Housing and Urban Affairs during astate of the credit union industry address.

While the NCUA does not have the authority to regulate CUSOs,the agency can have access to their books and records. Brian Lauer,a partner with law firm Messick & Weber PC in Media, Pa. saidover the last six to 12 months, calls have come in from creditunions aware of the increased scrutiny. The firm serves as generalcounsel to NACUSO.

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