NCUA yesterday reduced the upper end of its total projected assessments on credit unions for corporate stabilization by $400 million, leaving NCUA’s current estimate of future assessments to credit unions between $1.9 billion and $4.8 billion.
Total stabilization costs, which are being paid through the Temporary Corporate Credit Union Stabilization Fund, are expected to wind up at a range of $6 billion to $8.9 billion (down from $9.3 billion).
Credit unions have already paid $4.1 billion in stabilization fund assessments. Another $170 million of the costs are being paid out of settlements received by the agency from its lawsuits against Wall Street securities firms that sold residential mortgage-backed securities to the now-failed corporates. Those securities went south during the housing crisis.
The reduction in total estimated stabilization costs is provided in the agency’s semiannual update online regarding corporate system resolution and the performance of the NCUA Guaranteed Notes program.
NCUA Chairman Debbie Matz said the estimates on total stabilization costs will vary over time, and that will affect total assessments paid by credit unions. “The latest forecasts indicate that the top end of the range of total Stabilization Fund assessments has declined by $400 million during the last six months,” she said.