Newsroom

FOR IMMEDIATE RELEASE

Washington (May 19, 2016) - National Association of Federal Credit Unions (NAFCU) Executive Vice President and General Counsel Carrie Hunt issued the following statement regarding the National Credit Union Administration (NCUA) Board briefings today on callreport modernization and the Temporary Corporate Credit Union Stabilization Fund (TCCUSF).

The board today also received a report on the Temporary Corporate Credit Union Stabilization Fund. It will make a payment to Treasury May 27 of $700 billion, action that will bring the fund's outstanding borrowing with Treasury down to $1 billion. NCUA Board Chairman Rick Metsger said noted that this is a "historic" development for the fund during today's open board meeting, his first since he was appointed to the top board post May 2.

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 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," Hunt 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."

"NAFCU also appreciates the Board's transparent and thoughtful review of the call report and an extended examination cycle," said Hunt. "We are particularly encouraged by Chairman Metsger's plan to make better use of technology to modernize the examination process and decrease the regulatory burden on credit unions. However, we continue to urge the Board to make extending the examination cycle a high priority. We look forward to working with the agency on this critical matter."

The National Association of Federal Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation's federally insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance.www.nafcu.org.

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Patty Briotta

Director of Public Relations

Office:703-842-2820

pbriotta@nafcu.org