PenFed Supports NCUA Proposal to Pay Rebates to Credit Unions in 2018
TYSONS, Va., September 13, 2017 – PenFed Credit Union President and CEO James Schenck encourages the National Credit Union Administration (NCUA) Board to vote on September 28 for credit unions to receive rebates in 2018 of excess assessments paid during the aftermath of the Great Recession.
Federally insured credit unions paid $4.8 billion in assessments to the Temporary Corporate Credit Union Stabilization Fund from 2009-2013. Since then, NCUA has earned legal recoveries of nearly $5 billion to replenish the fund.
“PenFed commends NCUA for managing the Stabilization Fund out of the financial crisis and into a surplus,” said Schenck. “We thank NCUA Chairman J. Mark McWatters and Board Member Rick Metsger for their initiative to begin returning that surplus to credit unions in 2018—rather than waiting until the Stabilization Fund expires in 2021.”
“The timing of the vote to finalize the proposal will be critical,” said Schenck. “If the NCUA Board votes to merge the Stabilization Fund into the National Credit Union Share Insurance Fund before the end of the federal Fiscal Year on September 30, 2017, NCUA could begin paying rebates to credit unions in 2018.”
PenFed’s position on the rebate timing aligns with the Credit Union National Association. CUNA President and CEO Jim Nussle noted the association’s comment letter “supports NCUA closing the Temporary Corporate Credit Union Stabilization Fund as soon as possible. Furthermore, CUNA member credit unions request the NCUA to return money from the funds as soon as possible so they can put the funds to work form their members. Closing the TCCUSF in 2017 with a distribution in 2018 to credit unions is the most efficient and only legal way to transfer credit union funds back to credit unions. CUNA thanks the NCUA Board for listening to and working with credit unions on a plan to close the TCCUSF, and for publishing this proposal for public comment.”
About PenFed Credit Union
Established in 1935 as the War Department Credit Union, PenFed Credit Union is one of the largest credit unions in the country, serving over 1.6 million members worldwide with more than $22.8 billion in assets. Our long-standing mission has been to provide superior financial services in a cost-effective manner, while being responsive to members’ needs. PenFed Credit Union offers market-leading mortgages, automobile loans, credit cards, student loans, checking, certificates, and a wide range of other financial services with its members’ interests always in mind. PenFed Credit Union serves a diverse population, and no military service is required to join. PenFed Credit Union offers many paths to membership, including numerous employee groups and association affiliations. PenFed Credit Union is federally insured by the NCUA and is an equal housing lender. To learn more about PenFed Credit Union, visit PenFed.org, like us on Facebook and follow us @PenFed on Twitter. Interested in working for PenFed? Check us out on LinkedIn. We are proud to be an Equal Opportunity Employer: M/F/V/D.
About the Credit Union National Association
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 110 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org.