ARLINGTON, Va.-NAFCU's latest Flash Report found that credit unions plan to continue to sell off their loan portfolios. In 2004, 64% of credit unions sold loans on the secondary market, mostly comprised of mortgages. Fifty-five percent sold mortgages and another 5% sold student loans with securitized light vehicle loans trailing at 3% and securitized credit card loans at 2%. "Asset securitization has been an important mechanism for many credit unions, providing liquidity for asset/liability-management purposes and allowing more efficient use of capital," NAFCU's Flash explained. "Credit unions will likely have a risk-based capital structure applied to them at some point in the near future, in which case asset securitization is sure to become more important-and more frequent." Over half of respondents (57%) said their primary reason for securitizing loans was for capital efficiency. Another 33% said they sold loans last year for asset liability management purposes and 10% did it to earn a profit. Looking at 2005, 56% have already sold loans or plan to do so. Five percent are on the fence about whether or not to securitize loans in 2005. Of those planning to sell loans, 98% said they would be selling mortgages. One percent each answered credit cards and student loans.