ALEXANDRIA, Va. (3/21/14)--At a brief open board meeting Thursday, National Credit Union Administration Chief Financial Officer Mary Ann Woodson reported on the financial condition of the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) as of Dec. 31, 2013.
As announced by the NCUA board last November, there is no planned stabilization fund assessment for credit unions for 2014.
The net position of the TCCUSF improved from a $3.5 billion deficit at the end of 2012 to a $142 million deficit at the end of last year, according to the agency's audited information.
NCUA Chairman Debbie Matz asked Woodson why the "Receivable from Asset Management Estates, Net" line item had grown from $1.139 billion at the end of 2012 to $2.304 billion as of Dec. 31, 2013.
The agency CFO noted that the favorable report was the result of the enhanced performance of the NCUA Guaranteed Notes (NGN) Program, improved performance of legacy assets from the corporate credit unions that NCUA conserved, and the legal settlements NCUA received during 2013 from major banking firms that sold mortgage-backed securities to those corporate credit unions.
In a release after the meeting, Matz called effective management of the stabilization fund to minimize federally insured credit union assessments "a top NCUA priority."
"I'm hopeful we can forgo charging assessments not only in 2014, but in future years as well," she stated.
The Credit Union National Association has urged the NCUA--and will continue to press the agency--to forgo any further TCCUSF assessments.
The only other item on the Thursday meeting agenda was a joint federal financial regulators' proposal on minimum requirements for appraisal management companies. (See related story: Matz: AMC proposal shows 'regulatory blind spot.')
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