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NCUA agenda includes final rules related to CUSOs, CAMELS rating system
The NCUA Board next week is set to issue a two final rules, one regarding Credit Union Service Organizations (CUSOs) and one regarding its CAMELS rating system. Also on the agenda, the board will receive a briefing on cybersecurity.
The meeting, scheduled to begin at 10 a.m. Eastern, will be available via livestream on the agency's website.
On CUSOs, the board approved a proposed rule by a 2-1 vote to permit CUSOs to originate any type of loan that a federal credit union may originate and grant the agency with additional flexibility to approve permissible activities and services during its January meeting.
The association offered its support in response to the proposal but cautioned the agency against future efforts to permit additional CUSO activities without going through a transparent rulemaking process.
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.
On CAMELS, the board previously approved the proposed rule to add the “S” component – which stands for sensitivity to market risk – to the CAMEL rating system during its January meeting. In addition, the proposal includes redefining the “L” component – which stands for liquidity risk – to distinguish it from the new “S” component.
NAFCU generally supports the proposal; however, the association has requested that the agency provide credit unions with a detailed explanation of the changes as they relate to the examination process.
NAFCU previously sent members a Regulatory Alert outlining what these changes would mean for credit unions and will continue to work with the NCUA on this topic to ensure credit union concerns are heard.
NAFCU will monitor next week's meeting and update credit unions the latest from the NCUA.