The outstanding principal balance of the NGNs was $11.2 billion as of Dec. 31, 2015, down from $15.2 billion at year-end 2014. This amount represents the maximum potential, but not the expected, future guarantee payments that NCUA could be required to make.

As of Dec. 31, there were no probable losses for the guarantee of NGNs associated with the re-securitization transactions. Although the gross estimated guarantee payments were approximately $3.3 billion, the NCUA said payments are estimated to be offset by:

1. Related reimbursements and interest from the legacy assets of the NGN Trusts received directly from contractual reimbursement rights pursuant to the governing documents of approximately $3.1 billion as of Dec. 31, and
2. Indirectly by collections pursuant to NCUA's right as liquidating agent from portions of the AMEs' economic residual interests in NGN Trusts of up to approximately $3.4 billion as of Dec. 31, that are estimated to remain after all obligations of the NGN Trusts are satisfied.

Additionally, NGN fees receivable decreased to $2.2 million as of Dec. 31. The fees represent the NCUA's guarantee of the timely payment of principal and interest on the NGNs, principally through the TCCUSF. Guarantee fees on each NGN Trust are 35 basis points per year, payable monthly, on the outstanding balance of the NGNs.

According to the schedule of fiduciary net liabilities, during 2015, net liabilities declined by $711.8 million. When compared to 2014, the primary driver for the decrease was $743 million in revenues from settlements and legal claims. For 2015, the major recoveries from litigation were with Royal Bank of Scotland, Barclays Capital, Wachovia and Morgan Stanley. Another significant change in 2015 was with a $70 million net improvement in the recovery value of assets and liabilities, which reflected improving values of the anticipated future cash flows of the legacy assets in the NGN Program.

The net liability decline represents a benefit to the claimants of the AMEs, of which a portion is recognized by TCCUSF through the reduction of the AME receivable bad debt expense.

In fact, legacy assets have performed so well, cash flows securing the NGN 2011-R6 Trust paid off its outstanding principal balance in December 2015, resulting in the maturity of this NGN trust prior to its scheduled maturity date on May 7, 2020.

The NCUA's position on the likelihood of additional corporate assessments remained unchanged from last year. NCUA Board Chairman Debbie Matz said if the present trends continue, the agency does not expect to charge future stabilization fund assessments. The NCUA was also typically cautious regarding its future assumptions, warning that should conditions change, so could the forecast of no new assessments.

The NCUA was also equally cautious, as usual, regarding the topic of assessment rebates.

"Recoveries in the form of potential guarantor reimbursements by the NGN Trusts to the NCUA are subordinate to payments on the NGNs in accordance with the respective indentures," the report said. "As such, reimbursements of guarantee payments to the NCUA will not occur until the applicable NGNs have been repaid in full; after the NGNs are repaid in full, any cash flows received on the legacy assets underlying the NGN Trusts are directed toward reimbursements until the NCUA is reimbursed in full."

KPMG LLP, the independent firm that audited the Stabilization Fund's financial statements, issued an unmodified audit opinion with no reportable findings.

Additionally, the NCUA said it will update its two public website sections detailing corporate system resolution costs and NGN program information through the final quarter of 2015 now that the fund audit is complete. Further, the regulator will produce updated questions and answers covering final 2015 data on the total actual losses and implied write-downs on the failed corporates' legacy assets and the most recent estimated loss projection ranges.