Proposal to Sell FHA

I cannot understand why President Reagan wants to sell the FHA, one of the most profitable agencies of the federal government.

Since its inception in 1934, the FHA has returned substantial earnings to the federal government, and it will continue to do so under the proper administration.

In the eight years from 1935 through 1943, when I was with its public relations division in Washington, the FHA returned more than it spent in that period.

I reminded Reagan of these facts in a personal letter a week ago. The federal budget deficit should be reduced, but not at the expense of the FHA.

FRED G. FROST

San Diego