The National Credit Union Administration passed new regulations regarding loan participations, National Mortgage News claims in a new report.

The regulations set new requirements for selling and buying participations. 

“We are mindful that loan participations strengthen the credit union industry by providing a useful way for credit unions to diversify their loan portfolios, improve earnings, generate loan growth, manage their balance sheets and comply with regulatory requirements,” said NCUA Chairman Debbie Matz. “As a regulator, however, we need to put in place appropriate safeguards to ensure the loans are made safely.”