NCUA Media Advisory

NCUA to Release External Portfolio Valuations for U.S. Central and WesCorp

 

Alexandria, Va., July 13, 2009 -- The National Credit Union Administration (NCUA) today made public additional information pertaining to external corporate portfolio analysis, a move termed "part of NCUA's continuing commitment to make as much material available to the credit union industry and financial public as is possible" by NCUA Chairman Michael E. Fryzel.

In the interest of transparency, NCUA, in its capacity as conservator of U.S. Central Federal Credit Union (“U.S. Central”) and Western Corporate Federal Credit Union (“WesCorp”), is making available to any federally insured credit union (“FICU”) the quarterly “portfolio valuation” reports produced for U.S. Central and for WesCorp by Clayton IPS, LLC (“Clayton reports”).

"NCUA consistently strives to strike a reasonable balance between the desire for transparency and the provision of detailed, relevant data to interested parties, with certain legal and contractual requirements inherent in a process as complicated as this. I am pleased to release the Clayton reports and look forward to future opportunities to provide other information that will help the stakeholders gain new insights into corporate holdings," noted Chairman Fryzel.

The Clayton reports show quarterly valuations and future loss projections for U.S. Central’s and WesCorp’s respective portfolios of commercial and non-agency residential mortgage-backed securities using a proprietary valuation methodology that considers, among other things, projected default rates and the severity of losses based on home price depreciation/appreciation.

The Clayton reports will be provided subject to agreement by the requester to protect the report from unauthorized disclosure (“non-disclosure agreement”). Proprietary data, which is contractually barred from release, will be redacted from the attachments to the report. Where redaction of proprietary data would render an attachment meaningless, the attachment has been excluded entirely. However, the data from the excluded attachments is summarized in the attachments that will accompany the report. Further, the conservator has authorized Clayton to make each report’s proprietary data available for purchase by any FICU that requests it, subject to agreement by the purchaser to protect the data from unauthorized disclosure. (Contact Clayton IPS, LLC, representatives Scott Gibson at srgibson@ clayton.com, or Karl Weiss at kweiss@clayton.com).

The Clayton report for the 1st quarter of 2009 will be available for a minimum period of 30 days beginning July 13, 2009. The Clayton report for the 2nd quarter and all succeeding quarters will be made available for a minimum period of 30 days beginning on or about the date U.S. Central and WesCorp each publish their quarterly financial statement to their members.

The Clayton report on U.S. Central will be available to natural person credit unions that are members of a corporate credit union (“corporate”) that is itself a U.S. Central member upon request directly to their corporate. The Clayton report on U.S. Central will be available upon request to U.S. Central members and to any FICU that either is not a member of a corporate, or is a member of the League of IBM Credit Unions. A request for the report should be initiated on-line by ordering a non-disclosure agreement form through U.S. Central’s website (www.uscentral.coop).

The Clayton report on WesCorp is available upon request to WesCorp members and to any FICU. A request for the report should be initiated on-line by ordering a non-disclosure agreement form through WesCorp’s website (www.wescorp.org). The National Credit Union Administration charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the accounts of over 89 million account holders in all federal credit unions and the majority of state-chartered credit unions. NCUA is funded by credit unions, not federal tax dollars.

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