SACRAMENTO, Calif.–(BUSINESS WIRE)–The California Housing Finance Agency today commented on the announcement by Moody’s Investors Service that it has placed the Agency’s Aa3 issuer rating on review for possible downgrade due to concerns about declining home prices in California and uncertainty related to the current volatility in the municipal variable rate bond market.
Although disappointed with the timing of this announcement, CalHFA nevertheless will work diligently with Moody’s during the 90 day review period that is allowed under the announcement. We believe that the information and analyses that will be provided to Moody’s during this time will demonstrate the strength of the Agency’s current Aa3 credit rating. Over the past two years, CalHFA has taken steps to aggressively manage its loan portfolio to reduce the impact of home price declines including reducing LTVs, requiring higher FICO scores and enhancing loss mitigation 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 in the variable rate market.
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.