CUs PRESS NCUA FOR REGULATORY RELIEF
updated 08/08/14 12:11 PM
Corporate Assessment Unlikely
Credit unions continued pressing the National Credit Union Administration (NCUA) for regulatory relief last week as Credit Union National Association (CUNA) Interim President and CEO Bill Hampel wrote NCUA Board Chairman Debbie Matz a letter to emphasize the continuing need for regulatory relief measures.
Hampel called on NCUA to work with other regulators to reduce regulatory burdens that credit unions face. The letter also urged fiscal restraint for the agency.
Regulatory relief is a top priority for the California and Nevada Credit Union Leagues and CUNA as both organizations continue asking NCUA and the Consumer Financial Protection Bureau (CFPB) to minimize government-imposed requirements on credit unions every chance they have.
Corporate Stabilization Assessment Unlikely
Additional credit union payments to the Temporary Corporate Credit Union Stabilization Fund will not be required this year and are unlikely ever again, NCUA stated at its board meeting last week.
Total projected stabilization costs at the end of 2013 ranged from $2.8 billion to $4.2 billion—compared to a range of $6 billion to $9.3 billion in 2011—after all the NCUA Guaranteed Notes had been issued, according to Larry Fazio, director of examination and insurance for the agency.
The stabilization fund is currently projected to conclude in 2021 with a surplus of $600 million to $2 billion, and there could be a rebate to credit unions at that time, if all obligations have been met.
NCUA said the continued positive performance of conserved corporate credit union legacy assets, the NCUA Guaranteed Notes, and the $1.75 billion in settlements for the sale of mortgage-backed securities to the corporates have resulted in the favorable performance of the stabilization fund.