NCUA approves extended comment period for CUSO proposal

The National Credit Union Administration on Friday announced the regulator’s board had unanimously approved a 30-day extension to the comment period on a proposed rule regarding credit union service organizations.

Earlier this month the American Bankers Association requested a 60-day extension to the comment period, writing, “ABA as well as all interested parties need adequate time to read, understand, analyze and evaluate the proposal and the nature and extent of its impact and the risks imposed upon consumers, communities, and the financial services industry."

The rule, first proposed in January, expands the list of activities and services CUSOs can take part in, including expanding lending options for CUSOs. The rule also makes it easier for the NCUA board to approve various CUSO activities.

NCUA has also requested comment on broadening federal credit unions’ investment authority in CUSOs.

The original deadline for comments was March 29. NCUA said the new due date will be published later in the Federal Register.