NEW YORK — Plans underway from the National Federation of Community Development Credit Unions to form a secondary market for so-called nonconforming loans are still on track despite the upheaval in the financial markets, according to Federation Executive Director Clifford Rosenthal.

Under the plan, the Federation will purchase so-called non-conforming mortgages from its CDCU members, season them further and then resell them to investors. Rosenthal explained that the Federation will only purchase loans that have performed already for at least a year before seasoning them still further and selling them privately to socially conscious investors.

Since the Federation's loans will be ones with a history of performing, the organization expects there to be a market for them no matter what might be going on in the subprime market overall, Rosenthal explained.