The 2012
SHFA Statistical Report contains fiscal 2011 financial statements for 51
SHFAs.
Fitch's August 2011 state housing finance agencies (
SHFAs) statistical report contains fiscal 2010 financial statement information for 50
SHFAs.
For the fourth year, Fitch is including information on mortgage-backed securities (MBS) held by
SHFAs as part of their programmatic functions.
Applicable Criteria and Related Research: 2011 Outlook:
SHFAs Endure the Effects of a Slow Recovery
This significant decline demonstrates how
SHFA new bond issuance all but halted in fiscal 2009 and fiscal 2010 which followed several prior years of increases.
The significant decline follows several years of increases as
SHFA new bond issuance all but halted in fiscal 2009.
In the current market environment, disclosure practices are even more significant for assessing
SHFA programs' ratings,' said Eric Espino, Associate Director at Fitch.
The TCLP will provide financial relief to the
SHFAs by:
For the second year, Fitch is including information on mortgage-backed securities (MBS) held by
SHFAs as part of their programmatic functions.
While most
SHFA housing credits are expected to be assigned Stable Rating Outlooks, Fitch expects that some housing credits will be assigned Negative Rating Outlooks, driven primarily by pressures from a weakened credit environment, of which aspects include a severe economic recession, constrained access to liquidity, and the credit deterioration of key counterparties.
Contributing to the growth in assets may be the increased demand for the
SHFA product due to lower mortgage rates resulting from decreased costs of issuance under the legislation's Alternative Minimum Tax (AMT) relief for housing bonds.
The period of
SHFA growth in assets and debt, which started in FY2005, follows two prior years of decline in FYs 2003 and 2004 during which the agencies experienced rapid prepayments due to low interest-rates.
