National Association of Federal Credit Unions (NAFCU) President and CEO Dan Berger issued the following statement in response to news that the National Credit Union Administration (NCUA) will receive $1.1 billion from Royal Bank of Scotland in compensation for losses to corporate credit unions related to purchases of faulty mortgage-backed securities.
“NAFCU and our members thank NCUA Board Chairman Rick Metsger and NCUA Board Member J. Mark McWatters for their continued leadership on this critical issue. We appreciate NCUA’s persistence in pursuing recoveries, which have now grown to $4.3 billion, on the sale of faulty securities that led to the downfall of five corporate credit unions,” said Berger. “NAFCU will continue to urge the agency to pursue its diligent legal recovery efforts and to be fully transparent in how and when the funds recovered will be refunded to credit unions.”
NCUA’s recoveries in its suits over MBS will offset the total costs to credit unions of the corporate stabilization program. NCUA is looking at a potential rebate to credit unions after the program concludes in 2021.
NAFCU continues to urge NCUA to pursue all avenues available to offset the costs for credit unions of corporate stabilization. NCUA has also noted it’s unlikely any future stabilization assessments will be needed.