ALEXANDRIA, Va.—NCUA issued updated information Tuesday about the costs of its Corporate Resolution Program and Guaranteed Notes Program, but the information that credit unions will likely be most interested in is that the agency continues to predict that no further assessments will be charged.
The upper and lower ends of the Stabilization Fund's projected assessment range remain negative, from $2.2 billion in the red to a negative $200 million.
Provided the assessment range projections stay negative, further assessments will not be charged, NCUA said in a statement.
But those projections may change based on the performance of the failed corporates' legacy assets, future legal recoveries in NCUA suits and other variables such as interest rates, unemployment and housing costs.
"The fact that the assessment range is a double negative is a positive for credit unions," NCUA Chairman Debbie Matz said in a statement. "We've come a long way since 2010, when the assessment projections ranged as high as $9.2 billion, but we have more work to do. Our efforts to hold accountable those Wall Street firms responsible for the corporate crisis continue, and we must continue to effectively manage the Stabilization Fund.""
Since the Stabilization Fund was created in 2009, CUs have paid $4.8 billion in assessments. The fund is set to expire in 2021.
Matz cautioned that NCUA must still repay $2.6 billion to the U.S. Treasury, as well as principal and interest on NCUA Guaranteed Notes, among other obligations to the Stabilization Fund.
All of these items must be fully paid back before the regulator can distribute any remaining monies back to credit unions.
For more information, visit http://www.ncua.gov/Resources/Documents/QA-Corporate-Resolution-Costs-and-Assessments.pdf