Credit Union Trade Groups Endorse Proposed CUSO Rule While Consumer Groups Argue Would Authorize Predatory Lending
Two stories from David Baumann of the Washington CU Daily: Saying that the NCUA’s current rule governing Credit Union Service Organizations is sorely outdated and hampers innovation, CUNA and NAFCU are calling on the agency board to finalize an updated regulation. The National Credit Union Administration’s proposed Credit Union Service Organization rule would allow CUSOs to become predatory payday lenders that could make loans that far exceed the interest rate in the Federal Credit Union Act, consumer groups are warning.
Sens. Tim Scott (R-S.C.) and Catherine Cortez Masto (D-Nev.) have introduced legislation to increase the loan maturity cap of 15 years on credit union loans to 20 years, reports David Baumann of the Washington CU Daily.
After the proposed CUSO lending rule change approved in January by the NCUA Board, bankers are asking for more time to comment.
With credit union numbers dwindling and de novo efforts few and far between, Chip Filson looks at one area of the country where new ground might be made again: schools.
“When government gets more money, it wants to spend more,” warned Ed Callahan in 1984. Chip Filson calls on credit unions to hold NCUA’s feet to the fire when it comes to returning AME surpluses to credit unions.
David Baumann of the Washington CU Daily reports that new NCUA Chairman Todd Harper on Monday announced the appointment of Catherine Galicia as his chief of staff. Before being named chief of staff, Galicia served as Harper’s senior policy counsel.