Lizeth GeorgeOn October 21st, the National Credit Union Administration (NCUA) Board approved a proposal to amend the NCUA’s credit union service organization (CUSO) regulation. The rule, which takes effect November 26, will expand the list of permissible activities and services for CUSOs to engage in. In addition to allowing CUSOs to originate any type of loan that a Federal Credit Union may originate, this rule would grant the Board more flexibility to approve permissible activities and services.
The League of Southeastern Credit Unions and Affiliates (LSCU) wrote in support of this change, as this rule provides for the expansion of credit union activities and allows credit unions to be more competitive going forward. Currently, CUSOs are already providing services that help credit unions with credit cards, student loans, business loans, mortgages on top of all the other services they supply to credit unions. Therefore, the expansion of this authority to include services like auto loans and personal loans will prove to be beneficial to both credit unions and their members.
For years, CUSOs have been providing innovative services and new financial products that credit unions can use to provide value to their members. With the expansion of this rule, effective November 26, we believe these services from credit unions and opportunities for members will only increase.
For additional information related to the final rule, please visit the Federal Register.
