Divided NCUA Board Approves Controversial CUSO Rule

A divided National Credit Union Administration board on Thursday adopted a controversial final rule that will allow Credit Union Service Organizations to originate any loan that a federal credit union may originate.

Democratic board Chairman Todd Harper vehemently disagreed with the rule, but the two Republicans on the board, Kyle Hauptman and Rodney Hood, voted in favor of it. The two Republicans last month forced the issue on to the agenda, with Harper’s opposition.

Harper: Exams Demonstrate Need for Consumer Protection Focus

Citing deficiencies that National Credit Union Administration examiners found during the past year, board Chairman Todd Harper renewed his call Thursday for the agency to develop a separate consumer protection examination.

“We should be going in and looking at [credit union] consumer protection compliance systems,” Harper said, during his confirmation hearing before the Senate Banking Committee.