WASHINGTON—One of the most anticipated NCUA board meetings in some time will be held this Thursday, with potential refunds to credit unions on the agenda.
At issue will be the fate of the Temporary Corporate CU Stabilization Fund (TCCUSF) and a proposal to close it and merge it into the National Credit Union Share Insurance Fund (NCUSIF), and then in 2018 to begin making rebate payments to credit unions reflecting assessments paid a decade earlier for costs related to five failed corporate CUs.
Also, part of the discussion is a proposal to increase the normal operating level (NOL) of the NCUSIF.
The meeting and vote will take place with the two credit union trade associations taking opposite positions on whether the funds should be merged and payments should be made, as CUToday.info reported here.
Ahead of the meeting, NAFCU is again emphasizing that the trade association and its members oppose the proposal, and that it will continue to advocate for a full TCCUSF refund on behalf of all credit unions.
"Though we appreciate the NCUA board and staff working on this issue, NAFCU members stand opposed to this proposal – as written – because they continue to call for a full refund from the TCCUSF," said NAFCU President and CEO Dan Berger. "Even though we are the only national credit union trade association opposed to raising the NOL, NAFCU will continue to do what is in our members' best interest."
NAFCU outlined what it believes the proposal does and the concerns NAFCU members have raised:
What will the NCUA's TCCUSF closure proposal do if enacted?
- Close the TCCUSF fund and merge the assets and liabilities into the National Credit Union Share Insurance Fund (NCUSIF)
- Raise the NCUSIF's NOL from 1.3% to 1.39% – the highest level in the fund's history
How will this proposal impact credit unions?
- Credit unions will receive a much smaller portion of the money they put into TCCUSF – receiving just 15% of the $4.8 billion they have paid into the fund since 2010
- An increase in the NCUSIF's NOL from 1.3% to 1.39% may set a precedent for retaining excess money in the fund
NAFCU is also helping credit unions determine how much money they “stand to lose” if the NOL rises above 1.3% with an online calculator.
This Thursday at its open board meeting NCUA will also address:
- Proposed rule, Part 740, Accuracy of Advertising and Notice of Insured Status
- The agency’s 2018 – 2022 strategic plan
- Corporate Stabilization Fund quarterly report