The rating on Pennsylvania Housing Finance Agency's (PHFA) series 2005-88 bonds reflects: Very strong financial performance of the resolution; Very strong loss coverage protection provided by the agency's leveraged self-insurance fund covering estimated loan losses at 'AA' rating level; Very strong quality of the single-family mortgage collateral, including primarily conventional and FHA insured mortgages; and Investments commensurate with the rating on the bonds. Bond proceeds, along with an agency contribution from available funds in the indenture, will provide funds to originate new single-family mortgage loans, and pay assorted costs of issuance. Approximately $100 million will be used to purchase new single-family loans. The loan portfolio of approximately 37,400 mortgages contains mainly conventional loans (53.35%), and FHA-insured loans (39.57%), with small
