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.