March 30, 2021

NCUA extends comment period on proposed CUSOs rule

NCUAThe NCUA Board unanimously approved a 30-day extension of the comment period for its proposed rule on credit union service organizations (CUSOs). The rule, proposed during the board's January meeting, would expand the list of permissible activities and services for CUSOs.

NAFCU has previously supported additional authorities that would allow a CUSO’s owners to grow and will evaluate the proposal further to ensure it does not impose complex compliance requirements or additional burdens.

The association previously sent members a Regulatory Alert on the CUSO proposal highlighting the objectives it seeks to accomplish, which include:

  • expanding the list of permissible activities and services for CUSOs to include originating any type of loan that a federal credit union may originate; and
  • granting the NCUA Board additional flexibility to approve permissible activities and services outside of notice and comment rulemaking.

NAFCU explains how the rule would impact credit unions, including by allowing them to keep up with the pace of technological advances and help digitize loan processes, and also flags some potential concerns. For more information, view the Regulatory Alert.

The new deadline will be officially posted in the Federal Register soon.