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NAFCU, in its ongoing focus on the NCUA's use of monies received from credit unions, continues to strongly urge the NCUA to explore options to issue a rebate to credit unions on their stabilization assessments sooner rather than later and that the agency refrain from charging a share insurance premium in 2017.

In December, NAFCU launched an "NCUA Money Watch" page to keep tabs on the NCUA's budget and finances. NAFCU will provide ongoing updates there on the Temporary Corporate Credit Union Stabilization Fund and the National Credit Union Share Insurance Fund; the page also provides links to more comprehensive coverage of NAFCU's advocacy efforts.

"In our discussions with the NCUA, NAFCU is continuing to advocate that credit unions have previous assessments and more returned to them as soon as possible but with a maximum benefit to our members," said NAFCU President and CEO Dan Berger. "We are also monitoring the financials for the NCUSIF and pushing the NCUA to only charge a premium if legally necessary. We thank Board Chairman J. Mark McWatters and Board Member Rick Metsger for their continued leadership and vigilance on these issues."

The association is urging the agency to prioritize credit unions' interests in any decisions it may make regarding the TCCUSF, NCUSIF, budget matters and changes in operations that could be costly to insured credit unions, including the impact of any increase to the normal operating level of the share insurance fund.

NCUA staff in November estimated a potential premium charge in 2017 of 3 to 6 basis points. The law only requires that the agency charge a premium if the NCUSIF equity ratio were to fall below 1.2 percent, but the agency's current analysis indicates the ratio is not expected to fall to 1.2 percent this year.

NAFCU is monitoring numerous factors that could affect the fund and its ratio, including the potential failure of taxi medallion lender credit unions. Last week, the NCUA announced the conservatorship of Melrose Credit Union, a taxi medallion lender in New York.

NCUA staff recently briefed NAFCU's Share Insurance Committee about taxi medallion lenders and the NCUSIF's exposure to medallion loans.