Alexandria, Va. — Under questioning from NCUA Board Member Mark McWatters, outgoing NCUA CFO Mary Ann Woodson said that almost all of the losses from credit union failures were a result of fraud.

At the NCUA's Oct. 23 board meeting, Woodson said $28.6 million (95.3%) of the $30 million in losses to the NCUSIF from the 12 credit union failures this year related to fraud.

Woodson delivered the NCUSIF quarterly report at the NCUA board meeting.

“A lesson learned for this agency: spend more time thinking about things like fraud as opposed to regulation,” McWatters said.

“I take exception to that comment,” NCUA Board Chairman Debbie Matz responded.

Matz added that regulations are the best way to minimize the failure of credit unions.

“Safety and soundness and sound regulation go hand in hand and I want to make sure that's on the record,” Matz said.

Woodson said there was a reduction to the fund's reserves of $4.9 million, bringing the year to date total to $19.9 million. Total expenses were $29.4 million and net income was $24.6 million. As of Sept. 30, investment income was $52.4 million and total income was $54 million.

The NCUA said it does not plan to assess an NCUSIF premium for 2014. The board also approved two proposed rules regarding flood insurance and corporate credit unions.