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The Temporary Corporate Credit Union Stabilization Fund will make a payment to Treasury May 27 of $700 million, action that will bring the fund's outstanding borrowing with Treasury down to $1 billion.

This is a "historic" development for the fund, NCUA Board Chairman Rick Metsger said during today's open board meeting, his first since he was appointed to the top board post May 2.

The Temporary Corporate Credit Union Stabilization Fund was created in 2009 with a loan from Treasury of $5.1 billion, and credit unions have paid $4.8 billion in assessments throughout the stabilization program. NCUA is looking at a potential rebate to credit unions after the fund winds down in June 2021 and the NCUA Guaranteed Notes program concludes.

NCUA has recovered more than $3.1 billion in litigation related to the sale of faulty securities sold to corporate credit unions. Net proceeds are used to pay claims against five failed corporate credit unions, including those of the stabilization fund, and are expected to provide some offset to the assessments credit unions have paid for stabilization. Other suits are still in progress.

NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt reiterated NAFCU's support for NCUA's legal recovery efforts. "NAFCU and our member credit unions appreciate NCUA's vigilance in pursuing recoveries from Wall Street firms on the sale of faulty securities that led to the downfall of five corporate credit unions," she said. "We encourage the agency's continued efforts in this regard and urge full transparency on the recovery process and any future rebate to credit unions."

Today's open meeting also included discussion among board members and agency staff on call report modernization. Metsger reiterated his hope that the discussion will prove helpful to stakeholders – credit unions – by giving them an early look at what is being considered so they can provide input early in the process.

Today's meeting included no action items.