The NCUA is slated to unveil proposed rules regulating loanparticipation by credit unions and providing additional regulatoryflexibility at next Thursday's meeting.

NCUA Chairman Debbie Matz telegraphed both rules during her speech at NAFCU'sCongressional Caucus in September.

Matz said that originators would have to retain some part of theloan risk and “cannot solely reap the rewards while exporting allof the risk to other credit unions.''

She also said that the agency would expand some of the benefitsthat are currently only available to well-managed credit unionunder the Regulatory Flexibility program. The program exempts CAMEL1 and CAMEL 2 from certain regulations, such as limiting charitabledonations to nonprofit organizations promoting credit unions andrequirements to stress test certain investments.

The only privilege that the NCUA cannot extend withoutpermission from Congress is the ability to purchase eligibleobligations from other federally insured CUs without regard tomember status or the need to complete a secondary-market pool.

The board also plans to approve the agency's five-year strategicplan and its performance budget for next year.

In addition, NCUA CFO Mary Ann Woodson is scheduled to give areport on the health of the NCUSIF and the Temporary CorporateCredit Union Stabilization Fund.

During the past few months Woodson has reported declines in the percentageof insured shares in CAMEL 3, 4 and 5 credit unions.

The NCUA Board is also scheduled to hear a request from the $119million Henrico FCU of Henrico, Va., to expand its communitycharter.

The meeting, the last scheduled one of the year, is set for 10a.m. at the agency's headquarters in Arlington, Va.