ALEXANDRIA, Va. (3/28/13)--The National Credit Union Administration's Temporary Corporate Credit Union Stabilization Fund (TCCUSF) has again received a clean audit, the agency announced on Wednesday.
The audit, which was performed by KPMG LLP, covered the TCCUSF's 2012 financial statements. The NCUA in a release said the TCCUSF's financial condition remained stable, maintaining sufficient liquidity to meet its obligations, and its deficit net position continued to decline.
NCUA Chairman Debbie Matz said the clean audit is confirmation that the agency is fulfilling its financial reporting responsibilities. "We are operating the fund prudently and providing high-quality reporting that satisfies our need to maintain transparency as we manage the resolution of the corporate credit union crisis," she added.
"An independent auditor has given NCUA a clean financial statement audit opinion for the Stabilization Fund each year since Congress established it in 2009," Matz noted.
The NCUA said it would update the loss and remaining assessment estimate data on its website within a few days. Credit Union National Association Chief Economist Bill Hampel made an early reading of where these remaining assessments could end up. "Based on information included with the audit report it appears the remaining TCCUSF assessment range has dropped to between $1.6 billion and $3.9 billion, with a midpoint of $2.75 billion," he said.
This is a decline from the previous range of remaining assessments, which stood at $1.9 billion to $4.8 billion, with a midpoint of $3.35 billion, he noted.
"That's welcome news. The expected final losses continue to fall," Hampel said. "With these loss estimates, the midpoint could be fully paid with just over three assessments at last year's rate of 9.5 basis points. Or, if the assessments were spread evenly over the full nine remaining possible years of the fund, it would require annual assessments of about 2.5 basis points to collect the midpoint amount of $2.75 billion," he added.
For the NCUA release, and an NCUA Office of Inspector General review of the independence of the NCUA auditors, use the resource links.