NCUA Confirms: No TCCUSF Assessment in 2014—and Less Likely After
The NCUA confirmed February 11 that there will be no Temporary Corporate Credit Union Stabilization Fund (TCCUSF) assessment charged in 2014 and the agency further stated that credit unions are much less likely to be charged another TCCUSF assessment going forward.
"It is good to see NCUA recognize the good performance of the legacy corporate assets. They have improved markedly in the last few years. That, coupled with NCUA's good efforts in winning settlements with broker/dealers, has helped lessen the burden on credit unions," said League President Paul Gentile. "I do urge the agency, however, to be mindful of how it manages the NCUSIF with the increase in the Overhead Transfer Rate. As NCUA pulls money from the NCUSIF via the increased OTR, that increases the likelihood of an NCUSIF assessment. It's great not to have a corporate assessment, but if the increased OTR results in an NCUSIF assessment credit unions are again paying."
The agency said the positive TCCUSF news is the result of a $1.4 billion settlement with JP Morgan and the continued improvement in the performance of the legacy assets underlying the NCUA Guaranteed Notes program.
Credit unions have paid $4.8 billion in TCCUSF assessments since the fund was established. The projected net remaining assessments over the life of the TCCUSF, based on estimates from the second quarter of 2013, now range from -$0.2 billion to $1.6 billion.
CUNA Chief Economist Bill Hampel said future TCCUSF rebates are now very likely.