On October 21, the Board of Directors of the National Credit Union approved a final rule by a 2-1 vote to expand the range of licensed activities and services in which credit union service organizations (CUSOs) can engage. Under the final rule, CUSOs will be allowed to create, buy, sell, and hold any type of loan a federal credit union is permitted, including auto and payday loans. The final rule also gives the Board “additional flexibility to approve CUSO’s authorized activities and services outside of the notice and comment regulation.” NCUA Vice President Kyle Hauptman said the rule “gives credit unions the tools to compete more effectively in the digital market.” However, NCUA President Todd Harper objected to the final rule, warning that because the NCUA “lacks the third-party sales authorities that other federal banking agencies and several state regulators have, the NCUA does not have the authority to oversee CUSOs to comply with federal consumer financial protection. laws and regulations and compliance with prudential standards such as concentration limits, maximum loan-to-value ratios and minimum capital levels. The final rule takes effect 30 days after its publication in Federal Register.