Search
 

Only FCUs affected by NCUA position on CUSO service loans

I read with interest the article "CUSOs cannot service loans not originated by credit unions, NCUA says" which appeared on page 15 of your February 20 issue. I, along with others at NASCUS, very much appreciate NCUA Associate General Counsel Sheila Albin's work and legal opinions on behalf of credit...

By Staff Writer | Updated on March 19, 2002

<p>I read with interest the article “CUSOs cannot service loans not originated by credit unions, NCUA says” which appeared on page 15 of your February 20 issue. I, along with others at NASCUS, very much appreciate NCUA Associate General Counsel Sheila Albin’s work and legal opinions on behalf of credit unions. But, we want to set the record straight. The February 5th legal opinion letter to 1st United Federal Credit Union about CUSO service loans applied only to federal credit unions. State-chartered, federally insured credit unions follow state regulations. Part 712 of the NCUA Rules and Regulations does not apply to state-chartered credit unions. Your article failed to make this distinction. Permissible CUSO activities differ from state to state. NASCUS state regulators worked for many months with NCUA senior staff to preserve this distinction. The variance between state and federal CUSOs is an excellent example of a vibrant dual chartering system. Mary Martha Fortney Vice President of State Regulatory Affairs NASCUS Arlington, Va.</p>

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.