OUR CREDIT UNION WILL BENEFIT FROM THE JP MORGAN CHASE $1.4 BILLION SETTLEMENT WITH NCUA

NCUA is the National Credit Union Administration.  It is the federal financial institutions' regulator for credit unions as well as its insurer -- somewhat like the FDIC for banks.  Just three years ago, NCUA handed down a large monetary assessment to all credit unions to cover the losses from faulty mortgage-back securities.  The cause and effect of the assessment was explained by our CEO, Jim Giffin, at the 2010 annual membership meeting. Since that time, that assessment has decreased but still is an annual expense for our Credit Union. 

The following is good news for all credit unions:

On November 19, 2013, NCUA announced it will receive roughly $1.4 billion as part of 

NCUA Chairman, Deborah Matz, said in a statement, "Today's announcement by the Justice Department is extraordinary and will greatly benefit credit unions that have been paying for the losses caused by the financial institutions covered by this settlement," This resolution, combined with the $335 million already recovered, will enable NCUA to greatly reduce the assessments that all credit unions have to pay."

The agency said it is using net proceeds from the settlement to reduce the total Temporary Corporate Credit Union Stabilization Fund assessments charged to federally insured credit unions to pay for the losses caused by the failure of the five corporate CUs.  For more information regarding the JP Morgan Chase Settlement, CLICK HERE!