Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CUSO MBL service role clarified
ALEXANDRIA, Va. (5/14/08)—If a credit union service organization (CUSO) is compensated through a fee structure in which the CUSO is paid primarily when a member business loan (MBL) is funded, then there may be a conflict of interest which could prohibit the CUSO from fulfilling the MBL expertise requirement for a credit union, according to the National Credit Union Administration (NCUA). In a legal opinion letter dated May 1, the NCUA noted that credit unions are permitted to use a third party to meet the minimum two-year direct experience requirement of the MBL rule if the third party is independent from the transaction. Generally, the letter said, a third party is considered independent from a transaction if, with respect to a loan it is responsible for reviewing, it does not have a participation in the loan or an interest in the collateral securing the loan. If a CUSO does not satisfy those requirements, the NCUA wrote, a credit union should address any questions or concerns regarding the nature of its arrangement or specific transactions with the appropriate regional director.
Other Resources

RSS print
News Now LiveWire
NCUA Ch. Matz said the FOM proposal is the result of enforcement actions taken where CUs advertised open FOMs.
42 minutes ago
.@TheNCUA wants to know if there are other categories that should get automatic approval, staff says.
44 minutes ago
Alumni,homeowner assoc,labor unions, electric coops,scouting & church groups,assn. to further culture of nt'l or ethnic group are auto OKed.
46 minutes ago
Corporate separateness also would be required under FOM proposal. Separate physical location from FCU too.
51 minutes ago
An association must be found not to have been found to be formed for the purpose of being added to FOM, @TheNCUA says.
52 minutes ago