More time to comment on CUSO lending proposal

(April 2, 2021) If you couldn’t meet the deadline for filing your comment letter on a proposed rule affecting credit union service organizations (CUSOs), you’ve got more time: late last week, NCUA extended the comment period 30 days, to April 30.

The proposed rule would expand the list of permissible activities of CUSOs, deeming as permissible for the service organizations the origination of any type of loan that a federal credit union may originate. The proposal would also grant the NCUA Board additional flexibility to approve permissible CUSO activities and services.

Comments are also sought on broadening federal credit unions’ authority to invest in CUSOs.

The proposal originally held a March 29 comment deadline. Late last week, the agency said it was extending the deadline 30 days (on a unanimous notation vote by the NCUA Board); the notice of extension was published Wednesday in the Federal Register. It was ssued 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.

NCUA Board Extends Comment Period for Proposed CUSO Rule