The NCUA has released updated information on the costs of the Corporate Resolution Program and the performance of the NCUA Guaranteed Notes Program. This information is posted on the NCUA’s website for the corporate resolution and the guaranteed notes program.
NCUA will most likely not charge credit unions any future Stabilization Fund assessments since the projected range for the Temporary Corporate Credit Union Stabilization Fund “remain negative, from negative $1.6 billion to negative $3.2 billion, respectively.” NCUA Board Chairman Debbie Matz believes the long-term outlook for the fund is stable.
“Six years, ago, projections of possible Stabilization Fund assessments to credit unions ran as high as $9.2 billion,” NCUA Board Chairman Debbie Matz said. “However, prudent management of the Stabilization Fund, an improving economy and an effective legal strategy have produced a much better long-term outcome for federally insured credit unions.”
Credit unions have paid $4.8 billion in assessments since the creation of the Stabilization Fund in 2009. The Stabilization Fund is scheduled to close in 2021. NCUA is still obligated to repay $1.7 billion in outstanding borrowings from the U.S. Treasury.
NCUA also has recovered $2.5 billion from the Wall Street firms that sold the faulty mortgage-backed securities to the failed corporate credit unions. NCUA is using the net proceeds from these settlements to reduce the costs that federally insured credit unions need to pay for the corporate resolution.
To read the full story, visit the NCUA’s website.