The rating on Washington State Housing Finance Commission's bonds is affirmed based on: The strength of the Fannie Mae collateral agreement backing the bonds, Investments commensurate with the rating, and Asset-to-liability parity above 100 percent. The Fannie Mae collateral agreement provides credit and liquidity support for the transaction. Under the collateral agreement, Fannie Mae is obligated to make regularly scheduled mortgage payments prior to interest payment dates in the event that the borrower misses a mortgage payment. Fannie Mae provides liquidity support by covering the purchase price of tendered bonds in the event of a failed remarketing. Fannie Mae has the right to cause the mandatory redemption or tender or acceleration of the bonds under various circumstances and will pay
