ALEXANDRIA, Va. — NCUA's Corporate Resolution Program continues to run in the negative range, making it unlikely that the regulator will charge future assessments to credit unions for the Stabilization Fund.
The current upper and lower ends of the projected Stabilization Fund assessment range are negative $2.5 billion to negative $700 million, which NCUA Chairman Debbie Matz called "good news for credit unions."
"Five years ago, assessment projections ranged as high as $9.2 billion, but careful management and an improving economy have helped brighten the picture considerably," Matz said in a statement. "We can now see a future with no further assessments. With six more years until the expiration of the Stabilization Fund, NCUA will continue to exercise prudence, and we will continue our efforts to hold accountable the Wall Street firms responsible for the crisis."
Matz cautioned that those projections may change based on the performance of the failed corporates' legacy assets, future legal recoveries tied to pending NCUA lawsuits, and other variables such as interest rates, unemployment and housing costs.
Since the Stabilization Fund was created in 2009, credit unions have paid $4.8 billion in assessments. The fund is set to expire in 2021, though the agency is still obligated to repay $2.6 billion to the Treasury Department in outstanding debts. Principal and interest on the NCUA Guaranteed Notes, along with other Stabilization Fund obligations, must also be repaid in full before any remaining monies will be redistributed back to CUs.