The president/CEO of a South Carolina member business lending CUSO said the NCUA is moving in the right direction with its proposed new CUSO rules.

In an effort to protect credit unions from losses, the NCUA board proposed Thursday a rule that would require all CUSOs to file financial reports directly with agency and the appropriate state supervisory authority. The proposal would also make additional parts of the CUSO rule applicable to federally insured, state-chartered credit unions as well as federal credit unions.

"If CUSOs are to remain viable third-party vendors for credit unions, particularly MBL CUSOs, we must find common ground with the NCUA in its efforts to create a safer and more transparent credit union industry," said Michael Gudely, president/CEO of Innovative Business Solutions in Fort Mill, S.C.