ALEXANDRIA, Va. — The Temporary Corporate Credit Union Stabilization Fund received a fifth consecutive clean audit opinion, NCUA said Monday.
During 2013, the regulator said the Stabilization Fund's financial condition remained stable, maintaining sufficient available liquidity to meet its obligations while its deficit net position continued to decline.
NCUA said its chief financial officer will provide a detailed report at the March 20 board meeting.
KPMG LLP, the firm that audits the Stabilization Fund's financial statements, issued an unmodified audit opinion with no reportable findings. The agency released the Stabilization Fund's 2013 audited financial statements Monday. The KPMG report and the Stabilization Fund's financial statements are available online.
"Congress created the Stabilization Fund in 2009, and an independent auditor has given NCUA a clean financial statement audit opinion every year since then," NCUA Board Chairman Debbie Matz said in a press release. "KPMG's latest report, following the Board's announcement last November that we do not expect an assessment in 2014, demonstrates the agency's planning and management are prudent and that we are maintaining transparency as we work to complete the resolution of the corporate credit union crisis."
Carrie Hunt, NAFCU's SVP of government affairs and general counsel, released a statement saying the trade group is "pleased" to see the Stabilization Fund continues to turn in clean audits year after year, and the prospect of no further credit union corporate assessments.
"We will continue to press NCUA for more transparency on the stabilization costs being paid by insured credit unions," Hunt said. "Credit unions deserve clearer disclosures, not needles in the haystack. We need to know where every dollar went, and where every dollar may possibly come from to return to our members."
Monday's NCUA report also included disclosure of more of the costs related to its lawsuits in pursuit of recoveries from corporate credit union losses, an action NAFCU noted it long has urged.
The audit report shows 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's Hunt said.
NAFCU noted it has submitted Freedom of Information Act requests to the agency seeking disclosure of these costs, which are subtracted from lawsuit recovery amounts available to defray stabilization costs that credit unions will otherwise pay.
CUs Still Paying For Bad MBS
The Stabilization Fund is a revolving fund in the U.S. Treasury that is managed by the NCUA Board. The Stabilization Fund gives NCUA the necessary flexibility to manage costs to the credit union system resulting from losses on troubled mortgage-backed securities purchased by five failed corporate credit unions that NCUA liquidated. It is currently scheduled to close in 2021.
With the 2013 Stabilization Fund audit complete, NCUA will soon update its two public website sections detailing Corporate System Resolution Costs and NCUA Guaranteed Notes Program information through the final quarter of 2013.
NCUA said it will produce updated questions and answers covering final 2013 data on the total actual losses and implied write-downs on the failed corporates' legacy assets and the most recent estimated loss projection ranges.