NCUA Guidance Statement – Expansion of Permissible CUSO Activities and Associated Risks
By: Michael Mulvey
In November 2021, the NCUA expanded the lending capabilities of CUSOs. CUSOs can now engage in all types of lending permitted for federal credit unions. The NCUA recently released a letter to credit unions providing guidance on the CUSO lending rule now that the rule has been in effect for more than a year. The guidance addresses some risk factors that may be associated with lending CUSOs. If your credit union is contemplating lending to, investing in, or doing business with a lending CUSO, this guidance can be a resource to assist you in executing your credit union’s plan.