National Mortgage News is reporting that the National Credit Union Administration plans to unload $50 billion of troubled MBS belonging to now-defunct “corporate” CUs. The trade paper says it is “just a matter of how and when.” Apparently the $50 billion is the “face value” of the bonds. NMN points out that “how much these problem assets will fetch in the secondary market is unclear.”
That’s a big number from credit unions, which have historically been more interested in making loans than making them soundly. Risk management is to credit unions as customer service is to airlines: occasional.