An expansion of product and services by CUSOs and the removal of the 12.25% member business lending cap are just two of the issues the National Association of Credit Union Service Organizations will focus on this year.

The association released its 2011 legislative and regulatory agenda today. NACUSO said it plans to support all regulatory initiatives at the federal and state level to expand authorized products and services that can be offered by CUSOs. This includes streamlining of the authorization process for such products and services, should advance approval of the appropriate regulatory agency be required in limited circumstances.

NACUSO said it also supports a legislative initiative to remove the 12.25% cap on member business lending and increase the minimum to be considered a member business loan to $200,000. It is backing a regulatory initiative to allow CUSOs and credit unions with a proven track record of effective risk management in the business lending field to approve business loans for otherwise qualified entities without a personal borrower guarantee where appropriate.

Also on NACUSO’s agenda is supporting a legislative initiative to increase the statutory cap limiting credit union investment authority in CUSOs from the current 1% of a primarily asset-based complex formula to 5% of a similar asset-based or other appropriate formula of corresponding value, both in the limitation on investments and also in the limitation on loans.

On the flip side, NACUSO said it will oppose any regulatory or legislative initiative that would authorize federal or state credit union regulatory agencies to directly regulate, examine and supervise CUSOs, including any efforts to directly regulate credit union vendors, since many CUSOs offer products and services to credit unions.