NCUA Releases Reminder of Permissible CUSO Activities and Related Risks
The National Credit Union Administration (NCUA) recently released a reminder to credit unions addressing acceptable activities and services for credit union service organizations (CUSOs). The final rule, which went into effect on Nov. 26, 2021, expanded the list of permissible activities and services to include originating any type of loan that a federal credit union may originate, plus gave the Board additional flexibility to approve activities and services. In addition, the agency provided further guidance on the primary related risks a CUSO may carry, whether the credit union is a sole owner, investor, lender or customer – also highlighting the associated risks CUSO-originated loans pose. Credit unions are encouraged to seek guidance on managing CUSO relationships and risks in the CUSO section of the NCUA’s Examiners Guide. Additionally, they have also provided a comprehensive list of approved CUSO activities on their website. Need additional guidance or have questions on approved CUSO activities and related risks? Contact Doeren Mayhew’s Financial Institutions Group today for assistance.