The long-term ratings on Minnesota Housing Finance Agency's (MHFA) residential housing finance bonds reflect: Very strong financial performance of the bond program, Credit quality of the residential housing finance loan portfolio appropriate for the 'AA' rating level, Loan loss coverage at the 'AA' rating level provided by overcollateralization and a leveraged self-insurance fund, Cash flow strength, and Investments commensurate with the 'AA' rating level. All bonds additionally benefit from the GO pledge of MHFA (AA+) and the moral obligation pledge of the state of Minnesota (AAA). Series 2006O-R bond proceeds will not be used to purchase mortgages under the program but will instead be invested in an investment agreement until the scheduled mandatory tender date of Nov. 29, 2007. On
