The ratings on Colorado Housing and Finance Authority's (CHFA) single-family mortgage bonds were affirmed based on the recycling of up to $35 million in loan prepayments into new loans on May 1, 2006, and Sept. 1, 2006. Consolidated cash flows dated Nov. 1, 2005, reflecting the origination of the recycled loans and the full and timely payment of debt service on all bonds, have been reviewed. The 'AAA' and 'AA' ratings on the class I and class II bonds reflect the following factors: Substantial overcollateralization exceeding 113% on the senior class I bonds and 107% on the mezzanine class II bonds; The extremely strong credit quality of the FHA-insured, conventionally insured, other insured, and uninsured mortgage loans backing the bonds;
