Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
NCUA opinion addresses pre-approved CUSO activity
ALEXANDRIA, Va. (12/13/11)--A federal credit union may invest in a credit union service organization (CUSO) established solely to act as a corporate trustee on deeds of trust for real estate loans made by another CUSO of the credit union.  It also is permissible for a CUSO to form a subsidiary to function as the corporate trustee for its own real estate loans.

So said a Nov. 17 legal opinion letter from National Credit Union Administration (NCUA) Associate General Counsel Hattie Ulan to Samuel T. Wyrick, III., general counsel of Wyrick, Robbins, Yates & Ponton, LLP, of Raleigh, N.C.

The NCUA letter notes that deeds of trust are three-party documents, used in some states instead of mortgages, and which pledge real property to secure a loan: Typically, the borrower-trustor conveys legal title to real property to an impartial trustee to hold for the benefit of the lender-beneficiary in order to secure the loan obligation.

Ulan goes on to point out that the NCUA CUSO rule provides illustrations of permissible CUSO activities (12 C.F.R. §712.5) and trust and trust-related services, such as  acting as trustee, are allowed.

To read the complete opinion, use the resouce link below.
Other Resources

RSS print
News Now LiveWire
Large CU stress testing on the agenda for the April @theNCUA open meeting http://t.co/2TUcnmCmPi
23 hours ago
#FinancialLiteracyMonth Test your college financial aid knowledge @nasfaa http://t.co/xgrDmHaw8W
1 Day ago
Join @theNCUA #NCUAchat with @KenWortheyJr on April 23 from 11am to 12pm EST http://t.co/TnNmfFh4Nl #FinancialLiteracyMonth
1 Day ago
Maine's patent troll bill has become law. Read more in Monday in @NewsNowLiveWire
1 Day ago
Wash. DFI discusses serving legal marijuana businesses with @NWCUA http://t.co/3kw79HJUYF
1 Day ago