Sept. 24, 2012 – Federally insured credit unions will pay the Temporary Corporate Credit Union Stabilization Fund an aggregate of $790.5 million over the next couple of weeks to pay for fund obligations coming due by year-end.
The assessment, approved by the NCUA Board in July, will equal 0.095 percent (9 basis points) of total insured shares as of this June 30. NCUA is invoicing credit unions this month, and payments are due Oct. 9. NCUA estimates this year’s payments will reduce 2012 industry return on assets by 8 basis points and the aggregate net worth ratio by 5 basis points. NCUA details the status of the fund in Letter 12-CU-09.
NAFCU continues to urge NCUA to assess the least amount possible from credit unions and to take into full account the impact of any assessment on credit unions.
Credit unions have paid about $3.3 billion in assessments to the fund since 2010. At mid-year, NCUA staff estimated remaining costs in the range of $1.9 billion to $5.2 billion, which will be paid over time. The settlements NCUA has won so far in its suits against sellers of residential mortgage-backed securities are being used to offset total costs, as are returns on the NCUA Guaranteed Notes.