NCUA Plan Could Present Free Rider Issue on Prepaying Corporate Stabilization
Should the NCUA go forward with its plan to allow CUs to prepay their assessments for corporate stabilization costs, the measure could create an issue among credit unions which do not contribute to the prepayment but who nonetheless benefit from it.
Agency officials said that future assessments would be lowered for all if CUs prepaid the corporate stabilization assessments to a sufficient level.
Officials told reporters on a press call Friday that the agency would not “publish a list” of CUs that has prepaid their assessment.
But the NCUA’s director of examination and insurance, Melinda Love, said the information would be included on Call Reports and that if someone wanted to look up whether a CU had prepaid, they could.
The agency has set June 20 as the deadline for getting industry and general public comment about the plan presented by the NCUA Board on Thursday.
Should the comments prove favorable, the agency would likely schedule a special board meeting in late June to debate and approve a plan, officials said.