July 03, 2019

NAFCU meets with NCUA on corporate CUs

NCUANAFCU Vice President of Research and Chief Economist Curt Long and Senior Counsel for Research and Policy Andrew Morris met yesterday with the NCUA's Office of National Examination and Supervision (ONES) to discuss issues related to corporate credit union rules.

The association supports corporate credit unions and the invaluable role they play as providers of liquidity, and would like to see the NCUA make amendments to its current rules to allow more flexibility without impacting the safety and soundness of the corporate system.

Of note, the NCUA's spring rulemaking agenda indicated that a proposed rule to expand the permissible lending activities for credit union service organizations (CUSOs) is expected soon. NAFCU also recently offered recommendations "to ensure corporate credit unions are adequately equipped to serve the needs of the credit union industry" as the agency conducts its annual regulatory review.

NAFCU will continue to work with the NCUA on these issues.