The Pennsylvania Housing Finance Agency is scheduled to sell $81.4 million of single-family mortgage revenue bonds on Thursday after a one-day retail period.

The Series 2011-113 bonds will fund the purchase of mortgage loans for single-family residences for persons and families of low to moderate income. The bonds, which are general obligations of the agency and issued through five series, will mature from 2012 through 2041.

Moody’s Investors Service has assigned an Aa2 rating, affecting $4.4 billion of debt. The outlook is stable. The rating reflects the program’s financial strength, according to Moody’s, which cited an asset-to-debt ratio of about 1.09, favorable portfolio performance, and satisfactory provisions for mortgage insurance.

“All of these factors in combination are expected to enable this program to continue to strengthen over time,” analysts said.

JPMorgan is lead manager. The underwriting team includes Janney Montgomery Scott and Morgan Stanley. Ballard Spahr LLP is bond counsel. Richards & Associates PC is underwriters’ counsel.

Moody’s expects the loans to have Federal Housing Administration, Rural Development, or Veterans Affairs insurance or else be uninsured with a loan-to-value ratio of 80% or less. The mortgages will constitute first liens on single-family, owner-occupied housing with 30-year, fixed-rate terms.

Moody’s said a severe economic downturn could increase delinquencies, but added: “While foreclosure rates generally follow the patterns of serious delinquencies, this is not the case in Pennsylvania. PHFA’s foreclosure rates are very low due largely to strong program and portfolio management by the agency.”

The agency operates homeownership programs and rental housing development initiatives.

Since its founding in 1972, the Pennsylvania HFA has generated $10.3 billion of funding, primarily through the sale of securities, for more than 145,000 single-family home mortgage loans and 83,000 rental units.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.