NAFCU adds new info to TCCUSF FAQ

Money

May 19, 2017

This week, NAFCU's Regulatory Compliance team added updated information to its frequently asked questions document on the NCUA’s Temporary Corporate Credit Union Stabilization Fund.

The updated FAQ explores options the NCUA has to issue TCCUSF refunds to credit unions as soon as possible. The FAQ also discusses whether the agency has the legal authority to provide assessment refunds to credit unions directly from the National Credit Union Share Insurance Fund.

Other updated areas of the FAQ include explanations of:

•    the potential ramifications of the NCUA raising the National Credit Union Share Insurance Fund's normal operating level;
•    the potential risks of closing the TCCUSF prior to 2021.

The FAQ document also explains why federally-insured credit unions were required to pay stabilization assessments, what the TCCUSF does, how the NCUA Guaranteed Notes program works, and summarizes the NCUA’s recoveries so far from suits against firms that sold faulty securities to the corporates. The latest numbers reflect recent legal recoveries made by the NCUA.

The TCCUSF is scheduled to close in 2021. Credit unions have paid $4.8 billion in assessments since the creation of the fund in 2009. No further assessments are expected. Meanwhile, the agency's recoveries from firms that sold faulty mortgage-backed securities to corporate credit unions have risen to $5.1 billion.

NAFCU has urged the NCUA to explore all options to issue TCCUSF rebates as soon as possible.

 

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