The National Credit Union Administration needs authority over credit union service organizations and vendors to identify and reduce risks they pose to credit unions, the agency's inspector general said.
In a recent report, the NCUA Office of Inspector General said the third-party oversight would help protect the industry's Share Insurance Fund. The audit also notes that the last four NCUA board chairmen have advocated amending the Federal Credit Union Act to provide the agency with such oversight authority.
ICBA is calling for expanded oversight of CUSOs and third-party vendors as part of its "Wake Up" campaign spotlighting the risky practices, costly tax subsidies, and irresponsibly lax oversight of the nation’s credit unions.