The National Credit Union Administration (NCUA) released plans that indicate the organization will replay its $1 billion outstanding balance with the Treasury Department by the end of October.
With the payment, the Temporary Corporate Credit Union Stabilization Fund’s remaining balance will be payed off.
“National Association of Federal Credit Unions (NAFCU) and our members applaud NCUA board chair Rick Metsger and NCUA board member J. Mark McWatters for their steadfast efforts and leadership on this vital matter,” Dan Berger, president and CEO of NAFCU, said. “This milestone is a testament to the safety and soundness of the credit union industry. NAFCU will continue to urge the agency to be fully transparent in how and when the funds will be refunded to credit unions. NAFCU will remain vigilant in ensuring that NCUA manages the fund in a way that is most beneficial to credit unions.”
The NCUA said no funds would be available to provide federally-insured credit unions with an immediate rebate of stabilization fund assessments. Additionally, the agency said no funds would be available for any recoveries by investors with claims for depleted capital from the failed corporate credit unions.
In total, the NCUA has recovered approximately $4.3 billion in litigation from faulty securities sales to corporate credit unions. Net proceeds were used for claims by five failed credit unions, which includes those of the stabilization fund.