With much more at stake, it is no surprise that credit unionservice organizations are sounding the alarm louder than creditunions regarding an NCUA proposal that would alter how CUSOrelationships are regulated.

Credit Union Times contacted several CUs to get theirtake on how an amendment to Part 712 of the CUSO rule wouldrequire all CUSOs to file financial reports directly with theNCUA and the appropriate state supervisory authority. Thatrequirement would apply to federally insured state-chartered creditunions as well.

The NCUA also wants to limit these FISCUs' aggregate cashoutlays to a CUSO. The concern, the regulator said, is that lessthan adequately capitalized FISCUs pose “serious risk to theirmembers and the National Credit Union Share Insurance Fund wheninvesting money into failing CUSOs.”