Removing Barriers Blog

Michigan Credit Unions Encourage NCUA to Merge Funds

Earlier this week, the Michigan Credit Union League and 100 of their credit union CEOs  sent a letter to the NCUA’s Acting Chairman Mark McWatters and Board Member Rick Metsger.  The Michigan credit unions encouraged the NCUA Board to merge the National Credit Union Share Insurance Fund (NCUSIF) and the Temporary Corporate Credit Union Stabilization Fund (TCCUSF).  They also urged the Board to issue a dividend to any credit union with amounts over the mandated 1.3% in the NCUSIF. 

“Merging the two funds this year would eliminate the need for an insurance premium assessment as well as allow for dividends sooner rather than later to occur. While it is understood that merging the two funds also comes with some amount of risk and uncertainty, the passage of time and a very low probability of a significant economic downturn in the coming years, the risk seems relatively low.” 

In December and in February, CUNA  released white papers on both topics discussed and was pleased to see Michigan Credit Unions utilize both papers by referencing the research in their letter to the NCUA (links to both white papers are below). 

CUNA fully supports the Michigan Credit Union League’s advocacy efforts with the NCUA and will continue to be in contact with the NCUA as they work through their decision making process – ensuring America’s credit unions are heard. 

The NCUA held its most recent  board meeting on April 20, and is scheduled to meet again on May 25th.