The ratings on Pennsylvania Housing Finance Agency's bonds reflect: * 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 * State continuing to exhibit steady economic growth. Bond proceeds will provide funds to refund in part series T and series U bonds and provide funds to make new mortgage loans. The loan portfolio of almost 38,000 contains mainly conventional loans (61%) and FHA insured loans (33.02%), with small amounts of VA-guaranteed loans (4.09%) and RHS loans (1.89%).
