We said here last week that Gale Cincotta, a housing activist, had "put her foot in her mouth" at a recent Congressional hearing about the Federal Housing Authority's loan ceiling proposals. Naturally, she doesn't agree and has replied with a long letter.

We present the substance, without comment:

"As an activist in the housing field for 25 years, I have witnessed the role that the FHA and the mortgage bankers have played in inner-city, minority, and low-income neighborhoods. Year after year, I have witnessed the number of foreclosures reach catastrophic levels. I have also seen countless families lose homes they could not afford to keep.

"Mr. Kulkosky writes that 'if the loans go bad, revenue is lost.' Mr. Kulkosky needs a history lesson. The history of the 100% FHA guarantee shows that mortgage bankers get richer as neighborhoods get poorer."

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