The ratings on Colorado Housing and Finance Authority's series 1996A through 1996I bonds are affirmed based on the strength of the Fannie Mae collateral agreements backing the bonds. Each project is separately collateralized; assets from one project are not used to cover liabilities on any other. All issues affirmed have short-term investments commensurate with their ratings. In addition, all series exhibit asset-to-liability parity above 100%. The Fannie Mae collateral agreements provide credit and liquidity support for each transaction. Under the collateral agreement, Fannie Mae is obligated to make regularly scheduled mortgage payments prior to interest payment dates in the event that the borrower misses a mortgage payment. Fannie Mae provides liquidity support by covering the purchase price of tendered bonds
