ALEXANDRIA, Va. (March 1, 2016) – The Temporary Corporate Credit Union Stabilization Fund has received a seventh consecutive clean audit opinion, the National Credit Union Administration announced today.
During 2015, the Stabilization Fund’s financial condition remained stable, maintaining sufficient available liquidity to meet its obligations. This was the second consecutive year in which the Stabilization Fund had a positive net position. NCUA’s Chief Financial Officer will provide a detailed report at the scheduled March 24 open Board meeting.
“Credit unions have been spared billions of dollars in potential losses since 2009 because of the careful management of the Temporary Corporate Credit Union Stabilization Fund,” NCUA Board Chairman Debbie Matz said. “NCUA remains committed to effective and transparent management for the Stabilization Fund, and, if present trends continue, the agency does not expect to charge credit unions assessments for the Stabilization Fund in the future.”
KPMG LLP, the independent firm that audits the Stabilization Fund’s financial statements, issued an unmodified audit opinion with no reportable findings. The Office of the Inspector General released its report on the Stabilization Fund’s 2015 audited financial statements today. The Inspector General’s report and the Stabilization Fund’s financial statements are available online here.
Managed by the NCUA Board, the Stabilization Fund is a revolving fund in the U.S. Treasury. The Stabilization Fund gives NCUA the necessary flexibility to manage costs to the credit union system resulting from losses on faulty mortgage-backed securities purchased by five failed corporate credit unions that NCUA liquidated during the financial crisis. The Stabilization Fund is currently scheduled to close in 2021.
With the 2015 Stabilization Fund audit complete, NCUA will soon update its two public website sections detailing Corporate System Resolution Costs and NCUA Guaranteed Notes Program information through the final quarter of 2015. NCUA 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.