The rating on Southern California Home Finance Authority's single-family mortgage bonds reflects: The extremely high credit quality of the GNMA, Fannie Mae, and FHLMC MBS; 'AAA' rated investments; and Cash flow projections demonstrating sufficient revenues to meet debt service fully. The authority is issuing the bonds under a closed-lien indenture to purchase 30-year, fixed-rate MBS backed by single-family mortgages originated to low- and moderate-income residents of Los Angeles and Orange Counties. Each series matures on Nov. 1, 2033. Both series are sold at a 3.5% premium to first provide investment principal to generate positive arbitrage during the acquisition period, and then primarily to fund downpayment assistance to qualified homeowners. The bond rate on series 2000B-1B is 6.11% up to Oct.
