Corporate Stabilization Fund Gets Clean Audit

ALEXANDRIA, Va.—NCUA's Temporary Corporate CU Stabilization Fund has received its sixth consecutive clean audit, the regulator said today, but this time with a change—this was the first year the fund saw a net positive position.

A detailed report on the fund will be provided at the March 19 NCUA Board meeting, but KPMG LLP—the independent firm that audits Stabilization Fund financial statements—has issued "an unmodified audit opinion with no reportable findings," NCUA said in a statement. NCUA's Office of the Inspector General has also released its own report, along with Stabilization Fund financial statements, which are available online.

"The Stabilization Fund has saved credit unions from $40 billion in potential losses since 2009, and this sixth consecutive clean audit is a reminder of how well this important asset is being managed," NCUA Chairman Debbie Matz said. "NCUA remains committed to prudent, effective and transparent management for the Stabilization Fund. If current trends continue, the agency does not expect to charge credit unions assessments for the Stabilization Fund in the future."

With the 2014 audit behind it, NCUA will next update the portions of its website related to the Corporate System Resolution Costs and the agency's Guaranteed Notes Program. Updated data on 2014 and total actual losses and implied write-downs on the failed corporates' legacy assets are also available online.

The Stabilization Fund is currently expected to close in 2021.