SAN DIEGO -- Because it purchased so many "front loaded"investments, Western Corporate Federal Credit Union is expected toreport significant permanent impairments in the near future.

Scott Hunt, Director of the NCUA's Office of Corporate CreditUnions, told Town Hall attendees this morning that while U.S.Central Federal Credit Union's investments vary in weighted averagelife, WesCorp's securities will mature sooner, which gives themarket less opportunity to recover.

Hunt was even less optimistic when answering a question from theaudience regarding the potential for WesCorp investments to recoverlosses. He said based on NCUA and third party expertise, WesCorpinvestments are highly unlikely to perform better thanestimated.

The seized WesCorp purchased securities backed by mortgagesconcentrated in the nation's hardest hit real estate markets,including Los Angeles, Phoenix and Miami, Hunt said. Home valuesare still sinking in those areas, and lenders have so manyforeclosures in the pipeline, they can't even process them all.

Additionally, Hunt said the NCUA currently has no plan totransition either WesCorp or U.S. Central's board back to members.However, NCUA General Counsel Bob Fenner said any member who has aconcern about the NCUA's handling of the institution can queryHunt's office, and will receive a response.