The rating on Washington State Housing Finance Commission's bonds reflects: * High credit quality of the FNMA, GNMA, and FHLMC MBS backing the bonds; * 'AAA' rated investments; and * Cash flow sufficiency. The bonds are issued under a closed lien indenture to provide the commission with funds to purchase MBS, which are backed by mortgages originated to borrowers who are at or below 80% of the MSA's median income. The mortgages will be 30-year, fixed rate, fully amortizing loans representing first liens on residential properties located in rural areas of the state and throughout the state of Washington. Mortgages may be originated by participating lenders for the financing or refinancing of residences with no first-time homebuyer restriction. Subsequent to
