The NCUA said Tuesday it only received $369.9 million in pledges for the prepayment program to pay the costs of the Temporary Corporate Credit Union Stabilization Fund, far short of the $500 million needed to have the program go forward.
The agency received pledges from 799 credit unions.
“NCUA responded to credit union requests and created a viable alternative to offer prepayments as a way to manage assessments in the long run. While the pledges fell short of meeting the required threshold to move forward, the NCUA Board remains open, perhaps, to reconsidering this issue next year,” NCUA Chairman Debbie Matz said in a statement.
The agency said the prepayments, which would have been interest-free loans, would have resulted in reduction of the assessments that credit unions would have to pay this year. The NCUA has said if the program had gone forward the assessment for natural person credit unions insured by the NCUSIF would drop 6.4 basis points.
