On the recordJune 10, 2010
Mr. Chairman, I think the gentleman's definition of ``risk'' and his arithmetic are a bit faulty. To say that $1 billion of smaller loans carries less risk than $1 billion of larger loans is not something one can determine except by looking at the performance of those loans. As the gentleman from California (Mr. Gary G. Miller) pointed out, those larger loans perform better. The FHA, therefore, has less insurance risk and, actually, usually, makes a profit on those loans. So to say that loans in Los Angeles take away from loans in Ohio and expose the Federal Government to more risk than loans in Ohio is simply false.
