the f.h. e.a.s. capital reserve is still well below the level determined by congress to be the bare minimum to cover f.h. e.a.s. future losses. even though f.h.a. narrowly avoided a bailout this year, dangers remain in the years ahead due to its over $1 trillion, mr. president, exposure to risky loans and precarious economic conditions. most of the f.h.a.'s recent actions have only concealed these dangers. for example, instied of adequately raising insurance premiums over the life of the loan, f.h.a. has measured -- has increased upfront premiums to simile cover losses in the short term. loss, upfront premiums can be rolled into the mart balance therefore decreasing equity for borrowers o increasing the upfront premiums could make f.h.a. loans even riskier for both the borrower and the taxpayer who stands behind the mortgage. i believe it's time to face the reality that the federal housing administration's dangerou dangey undercapitalized and because of the lack of serious refor, f.h.a. teeters on th