Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
NCUA releases results of MBS reviews
WASHINGTON (5/4/09)--On Friday, the National Credit Union Administration (NCUA), in its weekly media release on the corporates, released the results of the analyses of all private label mortgage-backed securities at WesCorp and U.S. Central. According to the analyses--by Clayton Fixed Income Services, Inc.-- the range of estimated credit losses for U.S. Central under optimistic, base and pessimistic scenarios are $0.6 billion, $2.2 billion, and $6.5 billion, respectively. WesCorp has an optimistic loss level of $3.0 billion, a base of $5.6 billion and a pessimistic loss level of $7.9 billion. The Other-Than-Temporary-Impairment (OTTI) charges to be reflected on the March 31 statements for U.S. Central and WesCorp are $2.3 billion and $5.8 billion, respectively. This will result in an extinguishment of all Paid-in-Capital (PIC) and Membership Capital Accounts (MCA) at WesCorp. For U.S. Central, all PIC and 63% of MCAs will be exhausted. The March 31 financial statements are expected to be released by each corporate this week, NCUA said. The agency also noted that renewed liquidity pressures are mounting from normal seasonal outflows. Both credit unions have worked to establish contingent market funding sources, which remain limited due to the broader problems in the credit markets. NCUA continues to make contingency plans for potential liquidity needs, according to NCUA Chairman Michael Fryzel. At its May meeting, the NCUA board plans to consider changes to the Temporary Corporate Credit Union Liquidity Guarantee Program to provide longer term funding options. “I encourage all credit unions to continue to support liquidity needs by keeping all surplus funds within the credit union system,” Fryzel said. CUNA continues to make every effort to urge NCUA to consider alternative approaches to extinguishment.


RSS print
News Now LiveWire
.@CreditYOUnion captures voices of #100MM loud, proud at @GAUnitedCU See #NewsNow Thursday for more
13 hours ago
Ill. @GovernorQuinn signs patent troll law http://t.co/ugWf8zHpCm via @CrainsChicago
14 hours ago
.@MBAMortgage : Mortgage apps increased 2.8% from one week earlier for week ending Aug. 22.
15 hours ago
Franchise businesses may face higher breach risk with POS systems HT @briankrebs http://t.co/LGE46DUk15
16 hours ago
About 1 in 3 consumers use plastsic for in-person purchases of less than $5, according to @CreditCardsCom survey.
17 hours ago