NCUA will not charge an assessment for the Temporary Corporate Credit Union Stabilization Fund following a $1.4 billion settlement with JP Morgan for mortgage-backed securities.
"The timing of the settlement couldn't be better," NCUA Chair Debbie Matz told CU Times.
The JP Morgan settlement funds "will greatly benefit credit unions" and "will enable NCUA to greatly reduce the assessments that all credit unions have to pay," Matz said according to CUNA News Now.
Out of caution in case unforeseen developments occur, the agency did approve a range for the National Credit Union Share Insurance Fund assessment for 2014 of between zero and five basis points.
CUNA urged the NCUA to set the range for the TCCUSF assessment as narrow as possible, starting with zero bp, CUNA News Now reported.
Credit unions have paid $4.8 billion in TCCUSF assessments since the fund was established. The projected net remaining assessments over the life of the TCCUSF, based on estimates from the second quarter of 2013, now range from -$0.2 billion to $1.6 billion.