OHCS Single Family Bond Program: 1. Only FHA and RD Credit Enhancements Permitted; 2.Submitting Data to Moody's for Bond Rating Review.

I attended the State Housing Council meeting today (The agenda for meeting is HERE).

During the meeting staff announced three significant developments related to the single family Oregon bond program.

1. Future loans must have either FHA or Rural Development mortgage insurance--private mortgage insurance will no longer be permitted.
2. OHCS staff are assembling information to submit to Moody's as part of a credit rating review process. Staff indicated it is possible that the rating for agency bonds could be downgraded.
(One of my posts from last week HERE, has more background about the problems with HFA's and private mortgage insurance].
3. The outlines of a subprime refinance mortgage program are in place. A couple of key points from my notes. A. Loans must be either FHA or RD insured, and B. loans will be limited to borrowers with incomes below 80% median family income. The program will be available on a pilot basis but ONLY when and IF the bond market improves.