NCUA Slated to Discuss Assessment and Chartering Rules

At next Thursday’s board meeting the NCUA plants to announce the amount and due date of the assessment that credit unions will have to pay to enable the NCUA to pay back the loan from the Treasury Department that created the Temporary Corporate Credit Union Stabilization Fund.

The agency has said the amount will be affected by the timing and amount of bond defaults within corporate credit unions, with current estimates calling for $7.6 billion in defaults over the next two years. The stabilization fund has $6.4 billion set aside for current estimates of losses that would be incurred by the fund over the life of the securities, and must repay the Treasury Department $690 million in outstanding borrowings. Congress gave the NCUA a $6 billion line of credit last year but the agency has only used $1 billion to date.