May 19, 2021
The head of the National Credit Union Administration is scheduled to testify today on behalf of ICBA-supported legislation to expand oversight of third-party vendors, including credit union service organizations (CUSOs).
Testimony: In testimony for today’s House Financial Services Committee oversight hearing, NCUA Chairman Todd Harper asks Congress to consider draft legislation to grant it authority over these companies. As Harper notes, this lack of authority contrasts with the Federal Financial Institutions Examination Council.
Background: CUSOs are owned by credit unions but are not mutually owned, member owned, required to serve credit union members, or overseen by credit union laws and regulations. Instead, they're privately owned and often for-profit businesses.
Support: ICBA supports expanded oversight of CUSOs and third-party vendors. The Financial Stability Oversight Council, Government Accountability Office, and NCUA Office of Inspector General also support granting the NCUA oversight authority.