The National Credit Union Administration is coming to market with about $2.82 billion of 10-year notes backed by assets in commercial mortgage-backed securities acquired from two failed corporate credit unions. Barclays Capital will lead the negotiated sale that may price as soon as next week. The NCUA put the two largest corporate credit unions in the nation – US Central Federal Credit Union and Western Corporate Federal Credit Union – in conservatorship in March 2009. The coming offering continues the NCUA plan to divest about $50 billion of troubled assets the federal regulator acquired upon placing the two corporate credit unions, and three other credit unions, into conservatorship. The securities come to market backed by the full faith and credit of the U.S. government. The securities have an initial guarantee for timely payment of interest and principle from the NCUA. A few weeks ago, the NCUA received confirmation from the Federal Reserve, Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision of the federal backing for the notes. The confirmation enables the NCUA to offer the notes without first registering them with the Securities and Exchange Commission. The NCUA said its funding approach also allows it to avoid full-market losses on the legacy assets. In March, the FDIC completed the first sale of this type of government-backed RMBS with a $1.8 billion issue of bonds secured by loans from seven failed banks. The NCUA, which holds about 98% of the troubled assets in the space, plans to bring roughly 10 more MBS sales to market in the coming months as it moves through the troubled assets. Write to Jason Philyaw.