Removing Barriers Blog

CUNA Supports NCUA’s Proposed CUSO Rule
Posted April 30, 2021 by CUNA Advocacy

CUNA filed a comment letter with the National Credit Union Administration (NCUA) in supporting the proposed amendments to the credit union service organization (CUSO) rule. 

The CUSO rule proposed by the NCUA Board would expand CUSO lending authority which would allow CUSOs to better serve credit union members by making loans that might be impracticable for some credit unions to make now or in the future. Furthermore, the proposed changes to the adding permissible CUSO activities process represents smart rulemaking that increases the NCUA’s agility in considering and approving future permissible activities by CUSOs. 

Under the current CUSO rule, CUSOs can make most of the loans directly that credit unions can make except for auto loans and personal loans. By allowing CUSOs to make all of the loans that credit unions can make, the credit union system will have an avenue to compete with sophisticated lenders. These proposed changes are modest but important as the lending market becomes more complex and lending can require sophistication and resources that might only be available through a CUSO. 

CUNA is encouraged that the NCUA Board continues to review the rules and regulations to modernize requirements to meet ever changing market demands that credit unions face. We are hopeful that the board will quickly approve the proposed changes.