November 04, 2016

NAFCU answers CUs' corporate stabilization questions

Credit unions can get a summary overview of the NCUA's Temporary Corporate Credit Union Stabilization Fund in a frequently asked questions document produced by NAFCU's regulatory compliance team and posted online Friday.

The FAQ answers common questions about the fund and NAFCU's effort to get NCUA to approve some rebate to credit unions before the fund closes in 2021.

The FAQ document also explains why federally insured credit unions were required to pay stabilization assessments, what the TCCUSF does, the NCUA Guaranteed Notes program, NCUA's recoveries so far from suits against firms that sold faulty securities to the corporates, and the unlikelihood of future stabilization assessments.

NCUA last month paid the remaining $1 billion due to Treasury on its loan to the fund.

Credit unions have paid $4.8 billion to the fund since its inception, and NCUA expects it will rebate some of that once the stabilization program is concluded. NAFCU, meanwhile, is urging the agency to consider how it might begin repaying some of those funds before 2021.