NASHVILLE, Tenn. -- NCUA Board Member Gigi Hyland spoke tomembers of the American Credit Union Mortgage Association heretoday on a range of topics facing the industry, including theongoing mortgage crisis and credit crunch.

She gave her assurance that the NCUSIF "is safe and wellcapitalized and can withstand a great deal of stress," evenallowing for greater reserves having been set aside for losses fromseveral credit unions that were conserved because of real estatelosses.

She acknowledged that those CUs were state chartered, but saidthat a similar circumstance was equally possible for federallychartered credit unions. Hyland added that the NCUA's relationshipwith state examination agencies was good and that dialog wascontinuing to seek ways to mitigate losses. But she also said thatstate agencies were facing difficult budget problems which mightnecessitate having fewer examiners available to conduct exams.