NCUA updates costs, provides more certainty for NCUSIF distributions

by NAFCU Newsroom

The NCUA recently updated its corporate system resolution costs which now show a net projected loss to federally-insured credit unions (FICUs) of $1.7 billion. NAFCU Chief Economist and Vice President of Research Curt Long noted that this doesn’t materially change the agency’s cost projections, but does reflect more certainty in forecasted recoveries.

The updated figures are as of Dec. 31, 2017; the previous projected loss to FICUs was a range of $1.5 billion to $1.9 billion. FICUs paid $4.8 billion in assessments to the Temporary Corporate Credit Union Stabilization Fund (TCCUSF), which was closed and merged with the NCUSIF in September. Based on the current projection, credit unions will be refunded a little more than $3 billion. Most of that has already been, or will soon be, realized through the following:

  • $735.7 million through distributions later this year;

 

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