Stabilization fund report slated March 20
March 17, 2014 – NCUA’s board will receive a quarterly report on the Temporary Corporate Credit Union Stabilization Fund and a proposed interagency rule addressing minimum requirements for appraisal management companies.
NCUA won $1.4 billion in a settlement from JPMorgan Chase last fall related to recoveries on corporate credit union losses on mortgage-backed securities. NAFCU has called for a rebate once total costs are paid and the temporary stabilization fund expires in 2021. NCUA Chairman Debbie Matz said last month that a rebate could be paid after the fund expires.
Credit unions have paid about $4.8 billion in stabilization costs since the fund’s creation. No assessment is slated for 2014.
NCUA must still repay $2.9 billion in outstanding Treasury borrowings before any remaining stabilization fund distributions can be legally made to credit unions. As a result, any potential repayment to credit unions is not likely to occur prior to expiration of the stabilization fund.
NCUA is still pursuing recoveries in 15 separate lawsuits. Matz said any further recoveries will reduce future stabilization assessments.