March 17, 2014

Stabilization fund gets clean audit, NAFCU presses transparency

March 18, 2014 – NCUA on Monday released an audit report for the Temporary Corporate Credit Union Stabilization Fund, calling it the fifth straight consecutive year in which the fund has received a clean audit report, but NAFCU continues to press for more transparency.

Carrie Hunt
Carrie Hunt

"We are pleased to see that the stabilization fund continues to turn in clean audits year after year, but we will continue to press NCUA for more transparency on the stabilization costs being paid by insured credit unions," said Carrie Hunt, NAFCU's senior vice president of government affairs and general counsel.

The audit report, which addresses the fund's financials for 2013, does show that NCUA expects to generate $2.3 billion from the corporate management estate. It also shows the fund incurring $390 million in professional costs. Whether that's related to legal costs related to lawsuits that have led to recoveries is not clear.

"NAFCU has long urged more transparency from NCUA in its management of the stabilization fund and the costs all insured credit unions will ultimately pay for corporate stabilization, and we will continue to do so," Hunt said. "Credit unions deserve clearer disclosures, not needles in the haystack."

NAFCU has asked NCUA for more details on the stabilization fund's costs in requests submitted under the Freedom of Information Act.