ALEXANDRIA, Va. — Well-capitalized CAMEL 1 and 2 federal credit unions will have stricter rules on fixed assets, stress testing and member business loans, as a result of the NCUA Board's decision today to change regulatory flexibility in several areas.

On a 2 to 1 vote, the board voted to eliminate the exemption from the rule banning FCUs from investing more than 5% of their shared and retained earnings in fixed assets; eliminate the exemption from the rule requiring FCUs to obtain the liability and guarantee of the borrower's principals when making a member business loan; eliminate the exemption from the rule requiring stress tests to determine the impact of a 3% increase or decrease in interest rates; and eliminate the exemption from the existing rule which limits the delegation of discretionary control to third parties over the purchase and sale of investments of up to 100% of net capital.

There are 3,142 FCUs eligible for the program with investments totaling $125 billion.