A thirty-day extension of the comment period on a proposed rule to expand the list of permissible activities and services of credit union service organizations (CUSOs) was announced Friday by the National Credit Union Administration (NCUA).
The proposed rule would deem as permissible for CUSOs the origination of any type of loan that a federal credit union may originate; and grant the NCUA Board additional flexibility to approve permissible CUSO activities and services. The agency is also seeking comments on broadening federal credit unions’ authority to invest in CUSOs.
The proposed CUSO rule was issued with a March 29 comment deadline. On Friday, the agency said it was extending the deadline 30 days; the notice of extension is scheduled to publish Wednesday in the Federal Register.
The proposed rule was issued Jan. 14 on a vote of 2-1 of the NCUA Board, with then-Board Member Todd Harper dissenting (Harper was elevated to the chairman’s post later that month). Harper, making his objection, noted the NCUA’s lack of direct supervisory authority over CUSOs and indicated the proposal raised potential consumer protection concerns.
Reg lookup: Credit Union Service Organizations (CUSOs)