The rating on Pennsylvania Housing Finance Agency's bonds reflects: * High quality mortgage loan collateral which 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 commensurate with the rating on the bonds; * GO pledge of the agency; and * The state's continued steady economic growth. Bond proceeds will provide funds to issue new mortgage loans, series Q and R. The loan portfolio of over 35,344 loans contains mainly conventional loans (64.5%) and FHA-insured loans (30.22%), with small amounts of VA-guaranteed loans (3.79%), Rural Housing Services loans (1.47%), and uninsured loans with loan to value ratios
