The rating on Pennsylvania Housing Finance Agency's bonds reflects: * High quality mortgage loan collateral that continues to perform well; * Loss coverage provided by the agency's leveraged self-insurance fund covering estimated loan losses at the 'AA' rating level; * Cash flows indicating stable portfolio performance; * Investments corresponding with the rating on the bonds; * G.O. pledge of the agency; and * The state's continued, steady economic growth. Bond proceeds will provide funds to issue new mortgage loans, partly refund series R and series 27 bonds, and provide funds to make new mortgage loans. The loan portfolio of over 32,501 loans consists primarily of conventional loans (67.32%) and FHA insured loans (27.95%), with small amounts of Veterans' Administration-guaranteed loans
