ALEXANDRIA, Va.—NCUA’s decision today to return $735.7 million to CUs from the National Credit Union Share Insurance Fund in the third quarter of 2018 is not enough, according to NAFCU, while CUNA said it is still evaluating the distribution.
In October the agency merged the Temporary Corporate CU Stabilization Fund into the NCUSIF with the intent to distribute payments to credit unions reflecting assessments paid a decade earlier for costs related to five failed corporate CUs.
"The money credit unions will have returned to them belongs to their members and is critical to the products and services they offer,” said NAFCU President and CEO Dan Berger. “That is why NAFCU has consistently pushed for the NCUA to give all of the funds back to credit unions as soon as possible. While we are grateful credit unions will get some money back soon, NAFCU will continue to aggressively fight for credit unions to get all their money back, not just the small portion they're due to receive."
As CUToday.info has reported, NAFCU has opposed returning any funds that represent a small portion of what CUs paid to prop up the failed corporates.
NAFCU also emphasized that last year it was the only trade association fighting to keep the NOL of the NCUSIF at 1.3%, instead of the NCUA's proposed increase to 1.39%.
“NAFCU will continue to push for credit unions to realize the fullest distribution possible and urge the NCUA to return the NOL back to 1.3% as soon as possible,” NAFCU said.
CUNA president and CEO Jim Nussle said the trade association is closely reviewing the details of NCUA’s plan for share insurance fund equity distributions for credit unions in 2018.
“As the only national trade association that advocated for refunds to start this year, CUNA and the leagues were instrumental in getting credit unions those funds, which can be put to work on behalf of members,” stated Nussle.
CUNA emphasized that it supports a transparent and equitable method for repaying credit unions, and outlined a potential methodology for NCUA in its September comment letter on the proposed closure.