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STATE OF NEW YORK MORTGAGE AGENCY MORTGAGE INSURANCE FUND POOL & SPECIAL ACCOUNTS RATED 'AA' & 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Aug. 18 /PRNewswire/ -- The State of New York Mortgage Agency (SONYMA) Mortgage Insurance Fund's (MIF) Pool Insurance Account and Special Account claims-paying abilities are rated 'AA' and 'A+', respectively, by Fitch.
 The MIF was created by the state in 1978 as separate operating unit of SONYMA. The fund provides mortgage pool insurance for some of SONYMA's single family bond issues through the pool insurance account. It also insures first mortgages on multifamily housing and special needs facilities, and to a much lesser extent on single-family and elderly housing and economic development projects, through the special account. Both accounts are required to maintain separate reserves equivalent to 20 percent of both the risk in force and commitments issued plus 100 percent of any claim liability. Reserve funds are invested primarily in short-term U.S. government securities.
 Both ratings reflect the strong risk-to-capital requirements and the high asset quality and liquidity of reserve fund investments. Additionally, each account's rating also reflects separate credit considerations of its insured portfolio.
 The pool insurance account consists of 19 policies with an aggregate stop loss limit of $117 million providing pool mortgage insurance coverage on over 23,000 loans. The insured loans consists entirely of single-family mortgages funded from various SONYMA's single family mortgage bond issues. The mortgage portfolio generally is well seasoned and its historical performance has been very favorable. Pockets of geographic concentrations do exist around a few urban areas. Unlike the project account, the pool insurance account can retain excess earnings as additions to reserves thereby providing additional support.
 The project account has more than $500 million of risk in force. Important credit factors include the portfolio's favorable performance to date despite the recession and subsequent sluggish recovery, as well as the ongoing state support through the mortgage recording tax surcharge receipts which are the fund's primary revenue source. Concerns focus on the portfolio's significant geographic concentration in New York City and the account's high single risk exposures to several large AIDS facilities projects, which in turn are heavily dependent upon state Medicaid reimbursement payments.
 -0- 8/18/93
 /CONTACT: Vincent J. Barberio of Fitch, 212-908-0505/


CO: State of New York Mortgage Agency ST: New York IN: FIN SU: RTG

SM -- NY058 -- 4002 08/18/93 15:14 EDT
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Publication:PR Newswire
Date:Aug 18, 1993
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