ms. galante will remain to answer further questions to ms. galante, have you read the geo a report on risk mitigation one of the things that it says is that there's no comprehensive strategy on risk mitigation, and it calls for three specific actions to be taken, place? it also says the two important parts of the agency, single-family housing quality control activities and the office of risk management activities are still separate as the date of this report? has that changed since then? >> congressman, i had read the report and i have commented on the report for the gao. we generally think the gao did a very good assessment of the integrating the risk office into the overall fha operations. and so we are working on a number of the recommendations that they had. some of them work well in progress by the time the gao risk mitigation strategy is time. know that direction. still have one right. up further. wanted to talk to him about it wants them to be. is that something that is under consideration? i've asked this before and it's always been un

ms. galante for your patience to help this committee with the work. the question for me is not whether fha is needed. of course it is needed and will be needed for the foreseeable future. the question is whether or not fha operates in a way that will be sustainable without a massive taxpayer bailout. that is what i worry about. i have a very, very good report here that i'm going to to refer to by the gao direct drive financial markets or community investment not share scire will be on the second panel sometime this evening i suspect, but he does a very good job of this. and you know, according to the gao is, there is 4.7 billion in the end of your balance and the end of your reserve account. you say there's 33 billion that account. actually the 33.7 billion is combined between. >> okay the one that's historically used in this committee and when your predecessors came up was always the capital reserve account. >> it's historic here. based on earlier testimony by predecessors, we've always gone by this account. niu combined with another account? it's tw

ms. carol galante, who is the acting federal housing administration commissioner is seated at the witness table with secretary donovan, and is accompanying him today. and we appreciate your presence. and i understand you are going to assist, if needed, the secretary eric and i have enjoyed our conversation over the past few months. so we welcome you to this hearing. mr. neugebauer for two minutes. >> thank you, mr. chairman -- >> we're having a little longer opening statements but these are important matters and i think it's important that those dems who wish to make an opening statement do so. >> thank you, mr. chairman, mr. secretary, it's good to have you. you know, mortgage interest rate, fund report was issued, and it was a little ironic because that didn't paint a very pretty picture that yeah, the summary said that it is actually the sound. and i was pretty sure if i went to webster that an entity that had less than 1 penny of equity in fact it's not just less than 1 penny it is less than a quarter of a penny in equity with such huge out of business would not be an entity that was

ms. galante, and secretary donovan about the same issue.frustrated, embarrassed that we have not yet dealt with the issue of gses and just housing policy as a committee. and what i may do is hold her on the floor until i get some sense from the administration. again, i had a lengthy conversation with a secretary donovan today about the fact that nothing, i mean multiple choice proposal came out last february. i know numbers of us talked with administration in august about forming a bipartisan effort to deal with this. we became so frustrated we just offered our own piece of legislation as a marker, but i do think the comment that senator shelby, and many of us on both sides of the aisle, expressed during financial regulation and then now, year and half later, having done nothing, our legitimate. and i think a partial indication to me would just be from this committee, as getting some sense of when we might try to market up the bill dealing with the gses. but again i plan to vote her out. she did say today she was very open to insurance prem