The NCUA board has set the 2013 corporate assessments at 8 basis points (bp). This is 1.5 bp below last year's assessment. It's the lowest in four years. The assessment will generate $700 million. A story in the CU Journal states that $650 million of this year's money will go toward repaying borrowings from the U.S. Treasury.
CUNA was present at the meeting and had an immediate reaction.
"The good news is that the assessment is on the low end of the projected range of 8 bp to 11 bp. Based on CUNA’s previous analysis of the corporate securities, previous information released by NCUA, and recent and projected trends for the economy in general and the housing market in particular, this year’s assessment amount of about $700 million could well be sufficient to cover the remaining losses on the legacy assets acquired from the five failed corporate credit unions," said CUNA Chief Economist Bill Hampel.
Credit unions will need to make the assessment payment in October and count it toward the third-quarter financials.
In other news from the NCUA board meeting, a one-time $3.6 million lump sum payment, equivalent to a three-percent raise, was approved for NCUA employees. This money will help offset a two-year pay freeze for regulators. The Federal Credit Union Act requires the NCUA to keep pay comparable to other regulators to retain talent.