Compliance Update: NCUA won’t Launch Corporate Assessment Prepay Plan
August 3, 2011
August 4, 2011
The proposed prepayment program for corporate credit union stabilization assessments failed to attract the required $500 million in pledges that the National Credit Union Administration (NCUA) set as the requirement to launch the plan. However, the agency’s chairman said the board is open to reconsidering the issue in 2012.
The NCUA said that of the nation’s nearly 7,300 federally insured credit unions, 799 pledged $369.9 million to voluntarily prepay assessments. Having missed the $500 million trigger that would have launched the program, the NCUA noted it will not debit any voluntarily pledged amount from any credit union.
If the NCUA Board moves forward as planned, credit unions can expect to see an assessment for the Stabilization Fund to be around 25 basis points (BP). 24.9 BP was mentioned in the NCUA materials regarding the prepayment plan. In comparison, credit unions paid a combined 25.82 BP in assessments for 2010.
Source: CUNA News Now
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