NCUA extends comment period for proposed CUSO rule

The NCUA Board unanimously approved by notation vote a 30-day extension of the comment period for its proposed rule on credit union service organizations, Part 712.

The new due date for public comments will be published in the Federal Register in the near future. 

This rule, proposed during the January 2021 NCUA Board Meeting, would expand the list of permissible activities and services for CUSOs. Specifically, it would:

• Expand the list of permissible activities and services for CUSOs to include originating any type of loan that a federal credit union may originate; and
• Grant the NCUA Board additional flexibility to approve permissible activities and services.

The NCUA is also seeking comment on broadening the investment authority of federal credit unions in CUSOs.