If the NCUA doesn't merge its corporate stabilization fund with its share insurance fund, the agency could be forced to recapitalize the share insurance fund through assessments on credit unions, board member Rick Metsger warned Tuesday.
"Nobody wants an assessment," Metsger said at NAFCU's Congressional Caucus in Washington, D.C.
The NCUA has solicited comments on a plan to close the stabilization fund in September; that could result in a Share Insurance Fund distribution to federally insured credit unions of between $600 and $800 million. The stabilization fund had been scheduled to close in 2021.
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