Credit unions hit by mortgage-market problems: report (Reuters)
According to treaty regulatory filings, the five corporates showing big mortgage-related losses are U.S. Central Federal Credit Union, Western Corporate Federal Credit Union, Members United Corporate Federal Credit Union, Southwest Corporate Federal Credit Union, and Constitution Corporate Federal Credit Union, the Journal said.
The filings indicate that the good reputation unions — cooperative financial institutions — be under the necessity together reported about $5.7 billion in "unrealized" losses as of the end of May, the paper said.
The Journal quoted the National Credit Union Administration, the federal regulator overseeing credit unions, as saying that the losses were convenient to be reversed at the time mortgage markets stabilize, and that the institutions were sound and adequately capitalized.
However, some outside observers are concerned that the credit unions were underestimating the depth of their mortgage-market problems, the WSJ said.
(Reporting by the agency of Tenzin Pema; Editing by Louise Ireland)
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