ALEXANDRIA, Va. (1/19/16)--Credit union service organizations (CUSOs) must register with the National Credit Union Administration’s (NCUA) online registry between Feb. 1 and March 31, according to a letter sent to credit unions last week.
The letter (16-CU-02) provides information about the upcoming registration period, as well as information about the registry itself.
“Federally insured credit unions are required to enter into written agreements with any CUSOs they make loans to or invest in. Each agreement must be signed before a credit union invests in or lends to a CUSO,” the letter reads. “The written agreement must obligate the CUSO to annually provide certain information directly to NCUA and the state supervisory authority where applicable. This required information will be collected from CUSOs through the CUSO Registry.”
In the event a CUSO fails to register, credit unions may not make additional investments or loans to the CUSO until the registration requirement is met.
According to the NCUA, the registry was developed because the agency “needs more accurate information about CUSOs in order to better evaluate the risks to credit unions, as well as the inter-relationships between credit unions and CUSOs.”
The registry will be used by both examiners and credit unions, and after completion of the initial registration period, a CUSO’s registration can be confirmed using the registry.
“NCUA examiners will continue to incorporate a review of your credit union’s compliance with the CUSO rule during the examination. If NCUA identifies that your credit union is doing business with a CUSO that has failed to satisfy the annual registration requirement, NCUA will notify the CUSO of the need to register,” the letter reads. “The CUSO will then have 30 days to complete registration before NCUA notifies credit unions that any new investments and loans to the unregistered CUSO are impermissible.”
Starting Feb. 1, CUSOs can access the registry and related training materials at cusoregistry.ncua.gov.