In December 2018, the NCUA Board announced it would be decreasing the NOL to 1.38%, effective immediately. If certain statutory criteria is met, the NCUA will issue a distribution no later than the end of the second quarter of 2019. This distribution would bring the equity ratio down to the NOL. The equity ratio will be determined in February 2019 based on data from December 31, 2018. NAFCU appreciates NCUA’s reduction of the NOL, but we will continue to fight to lower the NOL to its customary level of 1.30%
On October 1, 2017, the TCCUSF closed and all funds, property, and other assets and liabilities were distributed to the NCUSIF. In September 2017, the NCUA Board voted unanimously to merge the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) with the NCUSIF and raise the NOL to 1.39%. NAFCU preemptively sent a letter to the NCUA on August 28, 2017 urging the Board not to increase the NOL, emphasizing that between the current NOL and regulatory capital requirements, there is a sufficient barrier in the system to withstand economic contractions.
On January 9, 2017, NAFCU sent a letter to NCUA Chairman Metsger urging him to reconsider whether a 2017 premium charge is necessary and to exhaust all other options prior to changing the premium.