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NAFCU President and CEO Dan Berger continues to urge the NCUA for more due diligence before taking action to close the Temporary Corporate Credit Union Stabilization Fund (TCCUSF).

"NAFCU's position is very simple, which is what makes it odd that it is being mischaracterized by some," said Berger. "NAFCU has always supported credit unions getting full and fair refunds from the stabilization fund as soon as possible.

"Unfortunately, NCUA's proposal to close the stabilization fund and increase the normal operating level for the share insurance fund from 1.3 percent to 1.39 percent falls woefully short of that," Berger continued. "Per this increase in the normal operating level, the agency would be holding onto close to $1 billion that rightfully belongs to credit unions."

NAFCU holds that the NCUA has not properly demonstrated why this dramatic increase in the normal operating level is necessary. In the association's comment letter sent to the agency Monday, Berger stated that the National Credit Union Share Insurance Fund's (NCUSIF) normal operating level is set appropriately and that regardless of whether the funds are merged, the NCUA does not need to charge a premium.

"Our objection is that, at its core, the NCUA proposal is not about full and fair refunds, rather it is about NCUA increasing the normal operating level to its highest level in the history of the SIF," Berger continued. "NAFCU members will continue to work with the agency on a plan to make credit unions whole as soon as possible."

NAFCU also has concerns with the legality of retaining credit unions' stabilization monies in the NCUSIF and the manner in which they will be refunded back to the industry.

Credit unions can use a new NAFCU-developed calculator to help them estimate their 2017 rebates if the TCCUSF is closed this year as proposed.

NAFCU is encouraging credit unions to submit comments to the NCUA on this proposal. Comments on this proposal are due to the NCUA by Sept. 5.