The 'AAA/A-1+' rating on the Washington State Housing Finance Commission's series 2002A and 2002B variable rate demand multifamily housing revenue bonds, issued for the Whisperwood Apartments, reflects the extremely strong credit enhancement of the mortgage backing the bonds through a Fannie Mae credit enhancement agreement. Upon bond closing, Fannie Mae will provide a direct pay credit enhancement facility, through which Fannie Mae will make all regularly scheduled payments of principal and interest due on the bonds. The credit facility also covers payments necessary to purchase tendered bonds resulting from a failed remarketing. The credit facility will terminate upon bond maturity unless terminated earlier pursuant to its terms. Any substitution of a credit facility results in a mandatory tender of bonds.
