ALEXANDRIA, Va.–The Temporary Corporate CU Stabilization Fund (TCCUSF) reported $425.7 million in net income for the second quarter, and $503.9 million through mid-year, according to a report delivered at NCUA’s board meeting today.
The big question for credit unions remains how much money will be left over after all debt-holders are paid off, which isn’t expected until 2021. A new range forecast will be published on NCUA’s website next week, according to CFO Rendell Jones. But in the meantime, Jones told the board the current range of $1.5 billion to $3.3 billion in funds available to be refunded to credit unions remains in effect.
Jones told the board once again that “There will likely be no future stabilization fund special assessments.”
During Q2, the TCCUSF’s provision for insurance losses showed a net reduction of $419.3 million, principally driven by proceeds received from legal recoveries.
The largest asset held by the TCCUSF remains the net receivables from the asset management estates, which represent the estimated funds to recovery, at about. $1.9 billion as of June 30.
The overall net position of $1.044 billion, said Jones, is up $618 million from previous quarter, with that net increase in total position again driven by net increase in legal recoveries.
The funds available for eventual rebate to credit unions will depend on numerous factors. In response to a question from agency Chairman Rick Metsger, Jones noted that $1 billion must still be repaid to the Treasury, and another $3.3 billion must be repaid to holders of NCUA-Guaranteed Notes (NGNs).
As of June 30 the TCCUSF had a total liabilities and net position of $2.045 billion.