ALEXANDRIA, Va. (3/20/15)--No credit union refunds from the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) are likely to be forthcoming until the fund expires in 2021, National Credit Union Administration staff said Thursday.
At the agency's open board meeting, NCUA staff also said credit unions are unlikely to be charged TCCUSF assessments in the future, if current trends continue.
For the year ending Dec. 31, 2014, the TCCUSF's net position increased by $380.7 million to a positive $238.5 million. The change resulted from improvements in projected cash flows relating to legacy assets that secure the NCUA Guaranteed Notes, according to Chief Financial Officer Rendell Jones.
Before any refunds would be available, the NCUA must first repay the $2.6 billion borrowed from the U.S. Treasury, staff said, in addition to other obligations.
CUNA Chief Policy Officer Bill Hampel told News Now this week that the debt to the Treasury, as well as other obligations of the TCCUSF, will be paid with proceeds from the legacy assets, and leftover funds will be the source of any potential rebates.
Interest on agency borrowings from the U.S. Treasury was $3.8 million for the year, and administrative expenses were $4.4 million. Outstanding borrowings by the fund from the Treasury remained at $2.6 billion at year's end.
The Corporate Stabilization Fund is scheduled to expire in 2021, as mandated by law.