The rating upgrade to 'AAA/A-1+' from 'A+/A-1' on the Washington State Housing Finance Commission's series 1997A bonds is based on the substitution of a credit enhancement facility provided by Fannie Mae ('AAA/A-1+') for a bank LOC provided by U.S. Bank National Association ('A+/A-1'). On March 27, 2001 Fannie Mae provided a direct pay credit enhancement facility in association with the bonds. The credit facility is direct pay through which Fannie Mae will make all regularly scheduled payments of principal and interest due on the mortgage. Under this structure, the trustee is instructed to draw on Fannie Mae one day prior to each bond interest payment date; hence there is no lag in this structure. The credit facility also covers payments
