ABA Calls for Extension of NCUA CUSO Comment Period

The American Bankers Association today wrote to the National Credit Union Administration seeking a 60-day extension to the 30-day comment period on a proposal to amend NCUA’s credit union service organization regulation.

ABA said that since the proposal involves a significant expansion of CUSO lending activities, adequate time is needed to evaluate the proposal and the extent of its impact and risks imposed upon consumers, communities, and the financial services industry, stating that the additional time would allow for “a more thorough and informed analysis of the proposal’s impact and the opportunity to consider additional legal, regulatory, and other issues that may not have been factored into the proposal.”

The association added that the NCUA board chairman Todd Harper has publicly opposed the proposal, noting that it “creates real reputational risk for the entire credit union system,” and that the “legal and public policy issues are too important” to support a 30-day comment period. ABA argued that a 90-day period is consistent with the regulatory objective of providing “a measured, inclusive, and deliberative rulemaking process.”