NCUA Says CUs Can Offer Correspondent Services To Other CUs
ALEXANDRIA, Va. – NCUA ruled that federal credit unions may offer a variety of correspondent services to other credit unions, including check collection, ACH origination and receipt, wire transfers, coin and currency, and a line of credit, under existing regulations.
Lines of credit may be offered under the FCU Act’s lending authority, NCUA said in a new legal opinion posted yesterday. The other services may be offered under the agency’s incidental powers rule.
“Correspondent services,” stated NCUA, “are services an FCU provides to other credit unions that it is authorized to provide to its own members as part of its operation.” If a credit union already offers these services to its own members “these activities meet the definition of correspondent services.”