California Housing Finance Agency Comments on S&P Report.SACRAMENTO, Calif. -- The California Housing Finance Agency today commented on the announcement by Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. that it has placed the Agency's AA- issuer credit rating and the rating of its home mortgage revenue bonds indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. on "CreditWatch with negative implications." "CalHFA will continue to provide additional information to Standard & Poor's to demonstrate that the Agency has sufficient capital capacity to cover any potential shortfalls on the home mortgage revenue bonds. We believe our reserves will be more than adequate for S&P to affirm our AA- rating." "While CalHFA operates exclusively in California and faces the unique issues affecting our state's real estate market, the Agency's lending was distinct. CalHFA was not and is not involved in subprime or Alt-A loans. CalHFA continues to apply the highest underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. standards and full documentation requirements to all of our mortgage lending." "Over the past three years, CalHFA has taken steps to responsibly manage the Agency's loan portfolio and reduce the impact of home price declines by reducing LTVs, requiring higher FICO scores FICO Score A standard credit score which makes up a substantial portion of a credit report that credit bureaus sell to lenders so they can asses an applicant's credit risk and whether to extend them credit. and enhancing loss mitigation MITIGATION. To make less rigorous or penal. 2. Crimes are frequently committed under circumstances which are not justifiable nor excusable, yet they show that the offender has been greatly tempted; as, for example, when a starving man steals bread to satisfy efforts. In addition, the Agency has significantly reduced its exposure to variable rate debt and also has substantial capital and liquidity resources to manage the current dislocation dislocation, displacement of a body part, usually a bone. When a bone is dislocated, the ends of opposing bones are usually forced out of connection with one another. In the process, bruising of tissues and tearing of ligaments may occur. in the variable rate market." About CalHFA Created in 1975 as the state's affordable housing bank, the California Housing Finance Agency has invested over $14 billion in non-taxpayer funds to help more than 150,000 California families live in a home of their own with a mortgage they can afford. |
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