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 'AA' rating level, * Cash flows indicating stable portfolio performance, * Investments commensurate with the rating on the bonds, * GO pledge of the agency, and * A state continuing to exhibit steady economic growth. Bond proceeds will provide funds to make new single family mortgage loans. The loan portfolio of almost 38,000 contains mainly conventional loans (60%) and FHA-insured loans (33.87%), with small amounts of VA-guaranteed loans (4.14%) and Rural Housing Services loans (1.99%). Of the conventional mortgage loans, 17.65% have loan-to-value ratios
