New losses at corporate credit unions increased the Temporary Corporate Credit Union Stabilization Fund loss provision by $1 billion during the month of March, the NCUA reported.
Chief Financial Officer Mary Ann Woodson told the NCUA Board during April's open meeting that the increase was based on analysis that showed a "significant decline in the level of cash flows for mortgage-backed securities at the corporate credit unions." The reduced cash flows resulted in a significant increase to the fund's loss exposure and necessitated the provision increase, she said.
The additional provision increases the stabilization fund's liabilities to just over $7 billion, about a 17% increase.
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