The NCUA said it does not foresee stabilization fund assessmentsfollowing the regulator’s Thursday posting of updated informationon the costs of the Corporate Resolution Program and performance ofthe NCUA Guaranteed Notes Program.

According to the data, both the upper and lower ends of theprojected assessment range for the Temporary Corporate Credit UnionStabilization Fund remained negative, at -$1.6 billion to -$3.2billion.

As long as both ends of the range remain negative, the agencysaid it is unlikely it will charge credit unions futurestabilization fund assessments.

“Six years ago, projections of possible stabilization fundassessments to credit unions ran as high as $9.2 billion,” NCUABoard Chairman Debbie Matz said. “However, prudent management ofthe stabilization fund, an improving economy and an effective legalstrategy have produced a much better long-term outcome forfederally insured credit unions. At present, we do not see a needfor further assessments, and we will continue our sound managementpolicies and litigation strategy.”

These projections, Matz said, are subject to change based on theperformance of the failed corporates’ legacy assets, future legalrecoveries, and economic variables such as interest rates,unemployment and housing costs. The regulator uses BlackRock, anindependent securities valuation firm, to project the futureperformance of the legacy assets in the NCUA Guaranteed NotesProgram.

Since the creation of the stabilization fund in 2009, creditunions have paid $4.8 billion in assessments. The stabilizationfund is scheduled to close in 2021.

During the NCUA’s March board meeting, Matz said the agency anticipates no funds will bedistributed to credit unions until 2021.

The NCUA is still obligated to repay $1.7 billion in outstandingborrowings from the U.S. Treasury. Principal and interest on NCUAguaranteed notes, as well as other obligations of the stabilizationfund, must also be fully repaid before the NCUA can distribute anyremaining funds to credit unions.

The NCUA also recovered $2.5 billion from the Wall Street firms that soldfaulty mortgage-backed securities to the failed corporate creditunions. The NCUA said it is using the net proceeds from thesesettlements to reduce the costs that federally insured creditunions need to pay for the corporate resolution.

The NCUA has 12 pending law suits related to faulty securitiesagainst underwriters, issuers, trustees and various banks, and onesuit against various banks that participated in setting the LondonInterbank Offered Rate.