NAFCU and CUNA praised the NCUA for the $1.4 billion settlementwith JP Morgan announced on Tuesday and called for the NCUA torespond by lowering or eliminating the corporate assessments creditunions now pay the agency.

“We applaud NCUA's persistence in seeking recoveries on the saleof faulty securities that led to the downfall of five corporatecredit unions,” said NAFCU President/CEO Dan Berger.

Also Read: JP Morgan, NCUA Settle for $1.4 Billion

“Today's announcement by NCUA is a momentous one, representingthe first significant financial relief for credit unions that havebeen operating under the weight of corporate stabilization since2009,” Berger said.

The assessment for the corporate stabilization fund is on theagenda at the NCUA's November meeting on Thursday.

“We appreciate NCUA's dogged pursuit of the recoveries it hasmade thus far, and we strongly encourage the agency to take a closelook at these recoveries and consider returning any excess receivedto insured credit unions,” Berger said.

Berger encouraged the agency to cease stabilization assessmentson insured credit unions in light of the resolution.

“This will be an enormous boost for many Main Street creditunions that were struggling under the continuing burden ofcorporate stabilization assessments. When credit unions cancontinue to serve their members with low-cost, low-fee products andservices, we all win,” he said.

The NCUA portion is part of an overall $13 billion settlementwith JP Morgan over failed corporate credit union investments.

CUNA said the settlement gives more weight to setting the TCCUSFprojected assessment range for next year at 0% of insured shares –a recommendation it has made in the past.

“The NCUA has taken a strong leadership role in its work toregain costs it says were caused by securities firms that knowinglysold products of questionable value. It must now make surethat the regained funds benefit the credit unions who have carriedthe cost of those actions,” CUNA President/CEO Bill Cheney saidTuesday.