The ratings on the Tennessee Housing Development Agency's Homeownership Program bonds are affirmed and reflect: * Very strong credit quality of the single-family loan portfolio; * A bond indenture with very strong financial strength; * Very strong adequacy of reserves for liquidity; * Sufficient loss coverage in the form of excess assets; and * Investments commensurate with the rating on the bonds. Proceeds of the series 1999-2A and 1999-2B bonds will be used to make a deposit to the loan fund to make single-family loans for a total deposit to the loan fund of $100 million for both issues. The series 1999-2C bonds are short-term notes that will mature Aug. 15, 2000. Cash flows run with 60-day lags indicate the
