WASHINGTON — Saying that her goal is to “target risky behaviors in credit  unions, not credit unions themselves,” NCUA Chairman Debbie Matz said Monday the agency will beef up certain safety and soundness regulations but ease up on others.

Later this fall the agency plans to issue a proposed rule mandating loan originators to keep some risk on their balance sheets and require loan buyers to increase due diligence, Matz said during a speech to NAFCU's Congressional Caucus at the Mayflower Hotel.

The NCUA chairman also announced that next year the agency will issue a proposed rule limiting investment concentration for natural person credit unions that will be similar to rules enacted last year for corporate credit unions.                        

She also said that in light of the comments on the agency's proposed rule to beef up regulations on CUSOs, they are likely to make changes that could exempt  CUSOs which perform back-office operations that don't pose a potential risk to the credit union system.                                                      

Matz also noted that the proposed rule mandating credit unions to devise interest rate risk management plans was needed to address safety and soundness concerns.                                             

In the area of regulatory relief she reiterated her pledges that the  NCUA would likely issue rules allowing credit unions to use derivatives as an interest rate hedge and allow credit unions to count subordinated debt toward risk-based net worth.                             

Matz reiterated her support for legislation raising the cap on member business loans and to raise supplemental capital.

She also said the agency will be unrelenting in ensuring safety and soundness while giving credit unions the tools to grow and serve more people.