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
In just over a year, @SaveToWinWA generates more than $1M of savings in 6 #creditunions http://t.co/rszMd0SZVv
12 hours ago
Even the pest guy is a cybersecurity risk: http://t.co/Tqq4qfOgcq
13 hours ago
.@SCTelco_FCU among best places to work in S.C. via @TheCCUL http://t.co/PJnjOArfm8
14 hours ago
#IceBucketChallenge in D.C. today: @HampelBill with help from some @CUNA staff http://t.co/3iOqE2KSjd
15 hours ago
P2P mobile payments draw millennials' interest via @BloombergNews http://t.co/uoO2anjCsV
17 hours ago