Managing HFAs’ Financial Health in the Face of Uncertainty NCSHA Annual Conference October 21,...

Managing HFAs’ Financial Health in the Face of UncertaintyNCSHA Annual Conference

October 21, 2014Ping Hsieh, Vice President – Senior Analyst

2NCSHA, October 2014

Rebounding from the Financial Crisis

• Positive trend continues with strong financial matrices amid deleveraging

• Better positioned to address variable rate risks

• More diversified business model

• Profitability is central to our credit analysis but Mortgage Interest Income to General Expense Ratio is also important


Profitability and Equity Are Growing

Source: Moody’s adjusted audited state HFA financial statements


HFAs Are Better Positioned To Address Potential Variable Rate Challenges

Source: HFA Surveys


Increasing Spread Between Mortgage Income and Bond Costs Increases Profitability



Mortgage Funding Shifted From Bonds To TBA

Source: HFA Surveys


Coverage of G&A Expenses by Mortgage Loan Revenues is Declining



Ping HsiehVice President – Senior Analyst [email protected] (212) 553-4461

Florence ZemanAssociate Managing Director [email protected](212) 553-4836

Kendra SmithManaging Director [email protected] (212) 553-4807

Managing HFAs’ Financial Health in the Face of Uncertainty NCSHA Annual Conference October 21,...

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