Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

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
Middle-class families walking a tightrope with little savings @pewresearch HT @CNNMoney http://t.co/Pfu2KHASZa
9 hours ago
.@CUNA's @SchenkMike on @federalreserve meeting: http://t.co/Ry39vjWdA1
10 hours ago
#creditunion cites prize-linked savings success in @WSJ http://t.co/3CXupUMx5d
12 hours ago
.@CFPB proposes mtg rule changes 2 facilitate responsible lending by small creditors, esp. in rural/underserved areas.http://t.co/sn6PnlS0EB
13 hours ago
#NewsNow Apple Pay interest booming at CUs, Western Union joins http://t.co/LsaoOYzAPx
15 hours ago