CORPORATE STABILIZATION COSTS
NOW ON NCUA WEBSITE

New NCUA Policy Will Keep Members in Their Homes

3 Board Actions NCUA Board Supports Regulatory Relief in Loan Modification Proposal

4 Board Perspectives The Third Time Is the Charm: TDRs No Mr. Nice Guy

5 Fair Lending Examinations at Credit Unions

6 A Watchful Eye on Fraud

8 Looking Ahead to 2012 in the Economy

10 2012 Workshop Dates, Locations and Agenda

Want to know the latest Corporate Stabilization Fund actual loss amounts, or this year’s assessment range? Have questions about how the corporate stabilization program works, or the portfolio profile of the Legacy Assets held?

Take a tour of two new additions to the NCUA website for answers. Go to www.ncua.gov, and select “Credit Union Resources and Information.” Under the drop-down menu, you can visit two related website sections. They cover both the corporate system resolution costs, and the NCUA Guaranteed Notes (NGN) program that securitized the Legacy Assets held by corporate credit unions.

Under “Corporate System Resolution Costs,” viewers will find:

;Actual total assessments credit unions have paid to date, from 2009–2011;

;Current projected range of future assessments, $1.9 billion to $6.2 billion;

;NCUA’s formal estimate of the 2012 assessment amount, 8–11 basis points;

; Total projected resolution costs, including the net effect of depleted member corporate capital and assessments paid to date;

; Latest actual Legacy Asset losses, plotted
in a timeline against the projected range
of losses stretching out until the program
ends in 2021;

; The effects of assessments paid by credit unions over time versus remaining projected losses; and

;Estimated future credit union annual assessment ranges, in annual basis point terms, running through 2021.

Under “NGN Program Information,” viewers will see financial details on the Legacy Assets, and an illustration of how NCUA securitized the Legacy Assets through the NGN Program. These details include:

; Isolation of the Legacy Assets from other corporate assets, through creation of the bridge corporates and the asset management estates;

; The timeline of the various 13 NGNs issuances and their transaction details;

; A profile of the Legacy Assets by balance and type;

; A profile over time of the Legacy Assets’ delinquency rate;

;Illustration of the changes in credit ratings on the Legacy Assets from time of issuance (most were AAA) to liquidation of the failed corporate credit unions;