ALEXANDRIA, Va.–The NCUA board has unanimously approved by notation vote a 30-day extension of the comment period for its proposed rule on credit union service organizations (CUSOs), Part 712. It has also placed one CU in conservatorship.
As CUToday.info reported, the rule, proposed during the January board meeting, would expand the list of permissible activities and services for CUSOs by:
- Expanding the list of permissible activities and services for CUSOs to include originating any type of loan that a federal credit union may originate; and
- Granting the NCUA Board additional flexibility to approve permissible activities and services.
NCUA said it is also seeking comment on broadening the investment authority of federal credit unions in CUSOs.
The new due date for public comments will be published in the Federal Register in the near future, NCUA said. Additional information can be found here.
As reported here, one bank group has called on NCUA to withdraw the rule, referring to CUSOs as “shadow credit unions.”
CU Conserved
Separately, in Texas, the Texas Credit Union Department has taken possession of the $106-million Edinburg Teachers Credit Union and appointed NCUA as conservator.
NCUA said the credit union’s main office at 900 West University Drive will remain open and operating with normal hours.
Edinburg Teachers Credit Union, which has 12,572 members, reported year-end 2020 income of $692,722 and net worth of 22.97%.