Shoring up the corporate credit unions could cost credit unions an assessment of between eight and 20 basis points a year–with an average of 14—over seven years, if Congress approves the NCUA’s proposal for a stabilization fund, NCUA Deputy Executive Director Larry Fazio said today.
“Our goal is to keep the premium to a manageable level,” he said during a conference call with reporters.
Natural person credit unions would repay the fund over a seven-year period.
NCUA Executive Director David Marquis said they are opposed to requesting a longer repayment period because “the longer out you go, the more problematic it could become” because of changing economic conditions. (CU Times)