NCUA issued a Letter to Credit Unions (23-CU-02) this week to provide guidance on expanded permissible activities and services for credit union service organizations (CUSO). NCUA finalized its CUSO rule in October 2021 and it became effective Nov. 26, 2021.
"Given the new rule has been in effect for more than a year now, the agency has produced the enclosed guidance statement to remind credit unions of the expanded opportunities to work with CUSOs and to address some of the primary related risks," the letter reads. "Based on a credit union’s relationship with a CUSO, whether sole owner, investor, lender, or customer, the level and types of risk may vary. Credit unions also need to remain mindful of and properly address any consumer financial protection risks that CUSO-originated loans pose."
NCUA has also established a CUSO Activities page, which will feature any new activities approved beyond those listed in the current rule. Currently there are no approved activities outside those included in NCUA regulation § 712.5, What activities and services are preapproved for CUSOs?