An official website of the United States government

News Español Contact Us

About
About
Created by the U.S. Congress in 1970, the National Credit Union Administration is an independent federal agency that insures deposits at federally insured credit unions, protects the members who own credit unions, and charters and regulates federal credit unions.
Regulation & Supervision
Regulation & Supervision
The NCUA protects the safety and soundness of the credit union system by identifying, monitoring and reducing risks to the National Credit Union Share Insurance Fund. Backed by the full faith and credit of the United States, the Share Insurance Fund provides up to $250,000 of federal share insurance to millions of account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.
Analysis
Analysis
The NCUA’s economists and analysts compile data on the credit union system’s financial performance, merger activity, changes in credit union chartering and fields of membership, as well as broader economic trends affecting credit unions. Users can find information on a single credit union or analyze broader nation-wide trends.
Support Services
Support Services
The NCUA provides a number of support services to the credit union system, such as providing training, grants and loans, chartering, and field-of-membership services; maintaining the health and stability of Share Insurance Fund; managing the assets of failed credit unions; and providing emergency liquidity.
Consumers
Consumers
The NCUA works to protect credit union members and consumers, raise awareness of potential frauds, facilitate access to affordable financial services, and educate consumers on the importance of savings and how they can improve their financial well-being.
News
News
Stay up to date on the NCUA's activities by subscribing to the NCUA's Express messages. Read press releases, speeches, testimony, and Annual Reports. Register for upcoming conferences and events.
Cybersecurity Resources
Cybersecurity Resources
Cyberattacks and cybersecurity vulnerabilities pose significant risks to the financial system. Because of vulnerabilities within the credit union industry and the broader financial system to potential cyberattacks, cybersecurity is one of the NCUA’s top supervisory priorities and a top-tier risk under the agency’s enterprise risk-management program.

Transfer of Foreclosed Property to CUSO

93-0919 / September 1993

Transfer of Foreclosed Property to CUSO

Subject

CUSOs

Historic Status

Non-historic

Mitchell B. Pollack, Esq.
244 Westchester Ave.
White Plains, NY 10604

Re: CUSOs (Your Letter of September 3, 1993)

Dear Mr. Pollack:

You have asked whether a federal credit union (FCU) can transfer foreclosed properties to a credit union service organization (CUSO) in order to limit its liability on those properties. In exchange for the transfer of the properties the FCU would receive a 100% interest in the CUSO.

Section 701.27(d)(5) of the NCUA Rules and Regulations, 12 C.F.R. 701.27(d)(5), provides that an FCU may invest in or loan to a CUSO that, among other things, sells repossessed collateral and processes, services, and sells loans. Under that authority, an FCU may transfer foreclosed properties to a CUSO in exchange for a 100% interest in the CUSO. We offer no opinion on whether the transfer would limit the FCU's liability on the properties.

Sincerely,

Hattie M. Ulan
Associate General Counsel

GC/LH:sg
SSIC 3501
93-0919

Last modified on

11/14/24