Seven Year Spread - NCUA Responds to Booking NCUSIF Replenishment

The NCUA just released a media advisory suggesting that they intend to seek congressional approval to allow credit unions to book the NCUSIF replenishment over seven years. This is certainly good news, and credit unions everywhere should follow the NCUA's suggestion of actively communicating with congressional leaders to ensure the required legislative changes are passed into law.

This does not, however, address the lack of transparency with regard to the WesCorp/US Central conservatorships. My fear is that credit unions, seeking to avoid a fight, will consider this seven year spread a victory and call it a day. We cannot let that happen if only because the relationship between the NCUA and the industry is in such poor condition. The complete breakdown of trust in the NCUA (as referenced in my earlier post today as well as by CUNA's Dan Mica and Callahan's Chip Filson) will make the entire regulatory and supervision process ineffective and potentially harmful.

I implore all credit unions to consider the NCUA's decision a blessing, but to not rest on the decision.