The National Credit Union Administration (NCUA) is proposing changes to the regulations governing Credit Union Service Organizations (CUSOs). The proposed rule aims to expand the types of loans CUSOs can originate to match any loan that a Federal credit union (FCU) may offer, giving credit unions more flexibility in their operations. Additionally, the rule seeks to broaden the investment power of FCUs in CUSOs, potentially allowing investment in organizations that serve the broader financial community, not just credit unions. The NCUA invites public comments on these proposals, which aim to enhance credit union competitiveness and cooperative efforts.
Simple Explanation
The NCUA wants to let special credit union helpers, called CUSOs, make all kinds of loans just like regular credit unions do, and they're asking people what they think about it. They also want credit unions to be able to invest more in these helpers to work better and be more competitive.