CUNA pushes NCUA for stabilization fund refunds to credit unions

CUNA is encouraging the NCUA to move decisively to begin paying refunds to credit unions from the Temporary Corporate Credit Union Stabilization Fund in 2017. Such a payment would be made possible by the maturing of $3 billion of NCUA Guaranteed Notes (NGNs) next year, releasing the legacy assets collateralizing those NGNs.

In a Nov. 4 letter to NCUA, CUNA President/CEO Jim Nussle writes that CUNA welcomes the improving financial condition of the fund and the implications for what will eventually be sizeable refunds to credit unions of assessments and depleted capital.

“We understand that the primary constraint on the timing of refunds is that the vast majority of NCUA Guaranteed Notes do not mature until 2020 and 2021 … Nevertheless, a significant portion of the NGNs will mature in 2017,” Nussle wrote. “We therefore request that NCUA announce and establish a process to engage with credit unions, state credit union leagues and CUNA regarding the disposition of available assets in 2017, with the goal of providing refunds to assessment payers and/or former capital holders as soon as possible, and in the maximum amounts possible. “