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NCUA Comes to Market with Final Mortgage-Backed Note Program

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The National Credit Union Administration late Monday came to market with its 13th and final offering of NCUA Guaranteed Notes, selling $2.21 billion of mortgage-backed product to investors.

The bonds are collateralized by toxic, nonprime MBS once owned by five now defunct corporate (wholesale) credit unions: U.S. Central FCU, WesCorp FCU, Members United Corporate FCU, Southwest Corporate FCU and Constitution Corporate.

The sale brings to $29 billion the dollar amount of CU-related bonds sold to the public. The proceeds are being used to finance the bailout of the credit union industry.

To date, 280 institutions, including 25 credit unions, have purchased the bonds, which are guaranteed by NCUA. Barclays Capital served as lead underwriter on the sale.

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