NCUA Chairman Debbie Matz said Tuesday the agency has to repay $2.6 billion in outstanding borrowings to the U.S. Treasury.
Since the Stabilization Fund was created in 2009, credit unions have paid $4.8 billion in assessments, according to the NCUA. The Stabilization Fund is scheduled to expire in 2021.
"Principal and interest on the NCUA Guaranteed Notes, as well as other obligations of the Stabilization Fund, also must be fully repaid before NCUA can distribute any remaining funds to credit unions," the NCUA said.
Credit unions will likely not be charged future assessments if the projected Stabilization Fund assessment range remains negative, according to the regulator. The upper and lower ends of the projected range are currently negative $2.2 billion and negative $200 million.
The NCUA said the projections are "subject to change based on the performance of the failed corporates' legacy assets, future legal recoveries and economic variables such as interest rates, unemployment and housing costs."
Matz said the double negative assessment range is a positive for credit unions.
"We've come a long way since 2010, when the assessment projections ranged as high as $9.2 billion, but we have more work to do. Our efforts to hold accountable those Wall Street firms responsible for the corporate crisis continue, and we must continue to effectively manage the Stabilization Fund," she said.
In the future, the NCUA said it will continue to update credit unions on the cost estimates of the Corporate System Resolution, the NCUA Guaranteed Note Program's performance and the total expected assessments they will have to pay during the life of the SIF.
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