August 24, 2014

NCUA: No future corporate stabilization assessments expected

Aug. 1, 2014 – NCUA staff said Thursday that all the numbers for the Temporary Corporate Credit Union Stabilization Fund indicate credit unions are unlikely to be hit with any corporate stabilization assessments going forward – a result NAFCU has long pushed for.

Current projections have the TCCUSF ending in 2021 with a surplus of $600 million to $2 billion.

Larry Fazio, NCUA's director of examination and insurance, said during Thursday's open board meeting that it's too early to talk about any refunds to credit unions.

NCUA says total projected stabilization fund costs at the end of 2013 ranged from $2.8 billion to $4.2 billion, down from the range of $6 billion to $9.3 billion in 2011, after all NCUA Guaranteed Notes were issued. The net projected remaining assessments range is still negative.

Since NCUA's corporate resolution program began, federally insured credit unions have paid an aggregate $4.8 billion in stabilization assessments.

NAFCU began pressing for an end to stabilization assessments and an eventual refund of excess amounts collected last year when NCUA's announced of a $1.4 billion settlement with JP Morgan over securities sold to the corporates.

NCUA staff plan their next TCCUSF quarterly report for the September open board meeting.