Newsroom

November 20, 2015

CUs face no 2015 insurance, stabilization assessments

NCUA staff and board Chairman Debbie Matz yesterday said credit unions will be assessed no share insurance premium or any stabilization fund assessment for 2015.

Any future stabilization fund assessment is considered unlikely. Staff also said any premium assessment for the National Credit Union Share Insurance Fund for 2016 – if there is one – would be somewhere in a range from 0 to 6 basis points.

The Temporary Corporate Credit Union Stabilization Fund's net position rose $24.1 million to a positive $499.1 million during the quarter ending Sept. 30, according to Thursday's report. The fund has now recorded positive net position for six consecutive quarters.

"We should note that recent legal settlements earned by the agency cannot yet be factored into this report," said Matz. "In the meantime, we can assure credit unions that NCAU will continue to aggressively pursue legal recoveries, and I am confident that we will have more settlements."

Matz noted the agency has recovered $2.2 billion overall through its suits against big banks for selling faulty residential mortgage-backed securities to corporate credit unions.

Board Member J. Mark McWatters said the agency should disclose associated legal fees and net receipts in addition to the settlement proceeds.

NAFCU, which supports and encourages NCUA's efforts to mitigate stabilization costs for natural person credit unions, has long urged the agency to disclose the legal fees associated with its MBS lawsuits.