Western Corporate FCU's investment portfolio is performing worsethan previously estimated by NCUA and Clayton Holdings.

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New OTTIs for the month of March reflect the fact that lossprojections have increased at the seized corporate, said NCUADirector of Congressional and Public Affairs John McKechnie.

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"This stems from deterioration in actual loan performance, aswell as projected deterioration in future conditions," he saidabout WesCorp's first quarter 2010 financial report, which reported$49 million in new OTTIs.

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News of the deteriorating investments follow December 2009 OTTIsat WesCorp and other corporates due to Wisconsin's insuranceregulator limiting monoline insurer Ambac's payments to 25 cents onthe dollar. Earlier projections "had showed greater paymentcapacity by Ambac," McKechnie said.

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The NCUA Board has not yet made any determinations about thesize of future assessments, but is planning a review of NCUSIFlevels sometime this fall, he said.

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