Five of the largest corporate credit unions in the U.S. are reporting significant paper losses on securities linked to mortgages. The development indicates that even the financial sectors most averse to risk are being hit by issues in the housing market. The National Credit Union Administration, the federal regulator for credit unions, says that when the mortgage markets stabilize, the credit unions' losses will likely be reversed. Some outside observers, however, worry that the problems may be underestimated.

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