Voicing opposition to the NCUA's proposal to amend the CUSOrule, NAFCU is the latest urging the regulator to reconsider itsactions.

The trade group said it does not agree with the NCUA'spreviously stated concerns that CUSOs pose a systemic industry-widerisk, saying “a very small percentage of credit union assets havebeen invested in CUSOs but also because credit unions, undercurrent laws and regulations are greatly limited in their abilityto invest in CUSOs.”

“To increase the regulatory burden on CUSOs based on a smallnumber of cases is both unnecessary and unfair,” wrote NAFCUPresident/CEO Fred Becker in a comment letter released Friday. “Ifthe NCUA adopts the proposed rule, the benefits that credit unions and theirmembers receive through their partnership with CUSOs wouldinevitably decrease, even though the arrangements do not pose unduerisk.”

As others have questioned, NAFCU said it does not believe thatthe NCUA has the legal authority to require CUSOs to submit theirfinancial reports to the agency.

Becker cited December 2010 testimony from NCUA Chairman DebbieMatz before the U.S. Senate Committee on Banking, Housing and UrbanAffairs, in which she stated “NCUA is the only regulator subject tothe Financial Institutions Reform, Recovery and Enforcement Act of1989 that does not have authority to perform examinations ofvendors which provide services to insured institutions.”

More than 140 letters have been received by the NCUA regarding its CUSOrule proposal. The deadline to submit comments is Monday.