ALEXANDRIA, Va. -- The NCUA Board last week added another permissible investment to the limited options for federal credit unions. The action will allow credit unions to invest in short-term (30-day) notes collateralized by whole mortgages, a thriving secondary mortgage market estimated at as much as $30 billion. Under a rule allowing the new investment, such investments must be with highly rated counterparties and credit unions must limit their concentration, in order to reduce exposure.
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