TALLAHASSEE, Fla. — Despite all the bad press mortgage-backed securities have received–or actually, because of it–some credit unions are snapping up the controversial investments, which many think are presently undervalued.

Dan McGowan, senior vice president/chief financial officer of $208 million Envision Credit Union, recently invested $33 million in mortgage-backed securities, representing his credit union's entire investment portfolio.

Though he would have preferred to loan the money to members, McGowan said Envision is currently experiencing low loan demand and has experienced an influx of deposits from members who have soured on banks and Wall Street. Those market conditions, coupled with the maturity of some laddered CDs, prompted the CFO to shop around.

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