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NCUA will receive $1.1 billion from Royal Bank of Scotland to settle claims related to the bank's sale of faulty mortgage-backed securities that contributed to the failure of two corporate credit unions, the agency announced Tuesday.

NCUA's recoveries in its MBS suits will offset the total costs to credit unions of the corporate stabilization program. The agency says it's looking at a potential rebate to credit unions after the program concludes in 2021.

"NAFCU and our members thank NCUA Board Chairman Rick Metsger and NCUA Board Member J. Mark McWatters for their continued leadership on this critical issue," said NAFCU President and CEO Dan Berger. "We appreciate NCUA's persistence in pursuing recoveries, which have now grown to $4.3 billion, on the sale of faulty securities that led to the downfall of five corporate credit unions.

"NAFCU will continue to urge the agency to pursue its diligent legal recovery efforts and to be fully transparent in how and when the funds recovered will be refunded to credit unions."

NAFCU continues to urge NCUA to pursue all avenues available to offset the costs for credit unions of corporate stabilization. To date, credit unions have paid $4.8 billion in stabilization assessments.

The settlement announced Tuesday covers claims related to securities sold to Western Corporate Federal Credit Union and U.S. Central Federal Credit Union. In 2015, NCUA accepted an offer of judgment from the bank for $129.6 million to resolve similar claims relating to securities sales to Members United and Southwest corporate credit unions.

NCUA still has litigation pending against other financial institutions, including Credit Suisse and UBS Securities, alleging they sold faulty mortgage-backed securities to corporate credit unions. NCUA also has pending litigation against various residential mortgage-backed securities trustees and LIBOR banks related to corporate credit union losses.