ALEXANDRIA, Va. — NCUA issued a guidance letter to corporate credit unions today alerting corporate credit unions to housing concerns affecting mortgage backed securities.

The letter (No. 2007-02) highlights credit quality and market value concerns with mortgage backed securities with underlying subprime or nontraditional mortgages and/or structured with an available funds cap. It also directs corporates to letter No. 2003-01 for policy requirements for credit concentrations and credit monitoring.

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