managing hfas’ financial health in the face of uncertainty ncsha annual conference october 21,...
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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
3NCSHA, October 2014
Profitability and Equity Are Growing
Source: Moody’s adjusted audited state HFA financial statements
4NCSHA, October 2014
HFAs Are Better Positioned To Address Potential Variable Rate Challenges
Source: HFA Surveys
5NCSHA, October 2014
Increasing Spread Between Mortgage Income and Bond Costs Increases Profitability
Source: Moody’s adjusted audited state HFA financial statements
6NCSHA, October 2014
Mortgage Funding Shifted From Bonds To TBA
Source: HFA Surveys
7NCSHA, October 2014
Coverage of G&A Expenses by Mortgage Loan Revenues is Declining
Source: Moody’s adjusted audited state HFA financial statements
8NCSHA, October 2014
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
9NCSHA, October 2014