In a June 2014 letter, the National Credit Union Administration is reminding credit unions that have an outstanding loan to a Credit Union Service Organization or an investment in a CUSO that they are required to amend their contractual agreement with that CUSO by the end of June.
“One of the primary changes to NCUA’s CUSO rule requires any FICU investing in or lending to a CUSO to enter into a written agreement requiring the CUSO to submit annual reports to NCUA (and the state supervisory authority, if your credit union is state-chartered),” explains NCUA Chair Debbie Matz.
The intent of this change is to permit the agency to obtain financial information directly from each CUSO, rather than through each credit union. There has apparently been some confusion as to which credit unions must enter into a written agreement requiring a CUSO to submit annual reports, and this letter clarifies that only those FICUs investing in or lending to a CUSO are subject to this part of the CUSO rule.
Click here to read the letter.