Good news on corporate stabilization

NCUA recently released its semiannual update on the Corporate Stabilization Fund. Of note is the “Q&A on Costs and Assessments” at ncua.gov, which the agency began posting several years ago at CUNA’s urging.

From the update, we can conclude that credit unions can look forward to substantial refunds of the costs they paid as the corporate credit union crisis unfolded. But that won’t happen soon.

Between 2008 and 2012, credit unions paid $10.4 billion as a result of the failure of five corporate credit unions: $5.6 billion as extinguished capital at the corporates and $4.8 billion as assessments paid by all federally insured credit unions.

In 2012, the projected range of total losses to the fund was $13.9 billion to $16.1 billion. Had those estimates held up, credit unions would still be on the hook for $3.5 billion to $5.7 billion in additional assessments.

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