The rating on Pennsylvania Housing Finance Agency's bonds reflects the strength of the mortgage collateral consisting of conventionally insured, FHA-insured, or VA-guaranteed single-family mortgages, fully funded reserves available for debt service, high quality investment of all funds, cash flow sufficient to pay debt service in a timely manner, the equal and ratable pledge of the various series under the resolution, strong oversight by a top-tier agency, and the 'AA' G.O. pledge of the agency. The agency will purchase new single-family mortgage loans with the proceeds of the 1996-49 bond series. Historically, the majority of mortgage loans under the resolution carry primary insurance from conventional insurers, including the Pennsylvania Insurance Fund ('AA') (71.66%). The remainder are either FHA insured (24.39%) or
