WASHINGTON, DC (March 17, 2014) -- National Association of Federal Credit Unions (NAFCU) Senior Vice President of Government Affairs and General Counsel Carrie Hunt issued the following statement regarding the National Credit Union Administration’s (NCUA) clean audit report today for the Temporary Corporate Credit Union Stabilization Fund. The report also included disclosure of more of the costs related to its lawsuits in pursuit of recoveries from corporate credit union losses, an action long urged by NAFCU.
“We are pleased to see that the stabilization fund continues to turn in clean audits year after year, and the prospect of no further credit union corporate assessments. We will continue to press NCUA for more transparency on the stabilization costs being paid by insured credit unions,” said Carrie Hunt, NAFCU’s senior vice president of government affairs and general counsel. "Credit unions deserve clearer disclosures, not needles in the haystack. We need to know where every dollar went, and where every dollar may possibly come from to return to our members."
The audit report does show that NCUA expects to generate $2.3 billion from the corporate management estate. It also shows the fund incurring $390 million in professional costs. Whether that's related to legal costs related to lawsuits that have led to recoveries is not clear.
NAFCU submitted Freedom of Information Act requests to the agency seeking disclosure of these costs, which are subtracted from lawsuit recovery amounts available to defray stabilization costs that credit unions will otherwise pay.
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