Additionally, Fitch affirms the ratings on approximately
The Rating Outlook for all bonds is Stable.
The bonds are general obligations of the agency and are secured by single-family mortgages, portions of multi-family loans, mortgage-backed securities and certain cash and investments held under the resolution. The multiple purpose bond program rating does not rely on the general obligation pledge to maintain the 'AA' rating currently assigned to the bonds.
KEY RATING DRIVERS
STRONG PROGRAM OVERCOLLATERALIZATION: As of FY 2013, the program had 125% overcollateralization (OC) which is sufficient for its 'AA' rating. Additionally, stressed cash flows illustrate a minimum of 122.3% OC under Fitch stressed scenarios.
MODERATELY SOUND PORTFOLIO PERFORMANCE: The portfolio's performance is currently adequate for single-family loans and strong for multi-family loans; mitigating the potential for losses to the program. Additionally, actual loan losses for this program have been minimal since program inception in 2007.
EXPOSURE TO VARIABLE-RATE DEBT: Variable-rate demand obligations (VRDOs) make up 29% of bonds outstanding under this indenture and are all swapped to a synthetic fixed-rate.
INDENTURE PROVISIONS: The supplemental indentures allow for program funds to be withdrawn down to 102% asset parity.
WITHDRAWAL OF ASSETS: Withdrawing of program funds to the legal requirement of 102% would put negative pressure on the rating and may result in a negative rating action.
The 2014 series A & B bonds are expected to be used to refund outstanding obligations previously issued under a separate single-family indenture and to finance the purchase of mortgage-backed security (MBS) certificates. In conjunction with the refunding of previously issued debt obligations, the mortgage loans and certificates securing the refunded bonds will be transferred to this indenture.
The multi-family housing loans, which have an outstanding mortgage balance of
In addition to the single-family whole loans, the multi-family loans, and the MBS certificates, the program has approximately
Fitch has also affirmed the following VHFA multiple purpose bonds at 'AA':
Additional information is available at 'www.fitchratings.com'.
--'State Housing Finance Agencies: Single-Family Mortgage Program Rating Criteria' dated
--'Rating Criteria for Pooled Multifamily Housing Bonds' dated
--'Revenue-Supported Rating Criteria',
Revenue-Supported Rating Criteria
Rating Criteria for Pooled Multifamily Housing Bonds
State Housing Finance Agencies: Single-Family Mortgage Program Rating Criteria
Source: Fitch Ratings
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