While ICBA last week submitted its comment letter urging the National Credit Union Administration to withdraw a proposal on credit union services organizations, community banks can still submit comment letters after the agency extended the deadline 30 days.
Details: The NCUA proposal would allow these corporate entities owned by credit unions to make any type of loan permitted for federal credit unions—even though they are not supervised by the agency and are exempt from Federal Credit Union Act consumer protections.
Background: CUSOs are owned by credit unions but are not mutually owned, member owned, required to serve credit union members, or overseen by credit union laws and regulations. Instead, they're privately owned and often for-profit businesses.
Taking Action: ICBA's Be Heard action center makes it easy for community banks to urge the NCUA to withdraw the proposal to avoid further eroding the credit union industry's tax-exempt mission.
