Fund Levy Unlikely; Doubts on Prepay
Credit unions probably won’t have to pay a premium for the NCUSIF, but the NCUA is still trying to encourage them to part with more of their money.
"Knock on wood, based on our current models we won’t have to have an assessment for the NCUSIF," Office of Examination and Insurance Director Melinda Love said during a May 26 agency webinar.
At the webinar, agency officials said that assessments for the corporate credit union rescue would likely go down if enough credit unions participate in the proposed prepayment plan.
For example, if the agency receives $500 million in prepayments, the corporate assessment would be 20 basis points for 2011, compared to 25 basis points if there are no prepayments, according to projections released at the meeting.