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ALEXANDRIA, Va. (Feb. 23, 2017) – Updated Questions and Answers about the Corporate Resolution program costs and projected future Temporary Corporate Credit Union Stabilization Fund assessments are now available online (opens new window), the National Credit Union Administration said today.

The upper and lower ends of the projected assessment range for the Temporary Corporate Credit Union Stabilization Fund remain negative, from negative $4.9 billion to negative $3.4 billion, respectively. As long as both ends of the range remain negative, it is unlikely NCUA will charge credit unions future Stabilization Fund assessments.

Credit unions have paid $4.8 billion in assessments since the creation of the Stabilization Fund in 2009. The Stabilization Fund is scheduled to close in 2021. NCUA continues to explore funding options for the remaining life of the program, including possible early termination of the Stabilization Fund with all obligations transferred to the Share Insurance Fund. There are accounting and legal matters and other factors that will bear on this decision.

The assessment projections are based on the performance of the failed corporates’ legacy assets, legal recoveries and economic variables such as interest rates, unemployment and housing costs. Those variables and projections are subject to change. NCUA uses BlackRock, an independent securities valuation firm, to project the future performance of the legacy assets in the NCUA Guaranteed Notes Program.

NCUA fully repaid its outstanding line of credit with the U.S. Treasury in October 2016. Principal and interest payments on the NCUA Guaranteed Notes, which are insured by the agency, still remain the primary obligation of the Stabilization Fund. The notes must be fully repaid—or alternative funding arrangements must be made to satisfy those obligations—before NCUA can distribute any remaining funds to credit unions.

NCUA also has recovered net proceeds of approximately $3.2 billion from the Wall Street firms that sold the faulty mortgage-backed securities to the failed corporate credit unions. NCUA is using the proceeds from these settlements to reduce the costs that federally insured credit unions need to pay for the corporate resolution.

NCUA will continue providing periodic updates on the estimates of the costs associated with the Corporate Resolution Program, the performance of the NCUA Guaranteed Notes Program, and the total anticipated assessments credit unions will pay during the life of the Stabilization Fund. A complete update with year-end 2016 data will be posted online before the end of April.