Colorado Housing and Finance Authority – Homeownership Bonds –

Rating Action: Moody’s assigns Aaa (sf) to Colorado Housing and Finance Authority’s Homeownership Class I Bonds, Series 2022AA (Federally Taxable) (Social Bonds); outlook stableGlobal Credit Research – 14 Mar 2022New York, March 14, 2022 — Moody’s Investors Service has assigned the rating of Aaa (sf) to the approximate $69.9 million Colorado Housing and Finance Authority’s Homeownership Class I Bonds (Mortgage-Backed Securities Monthly Pass-Through Program), Series 2022AA (Federally Taxable) (Social Bonds) (sf). In addition, Moody’s maintains the Aaa (sf) on all Class I outstanding debt under the indenture. The outlook is stable.RATINGS RATIONALEThe rating reflects the bond program’s strong portfolio composition – fully comprised of mortgage backed securities, solid loan performance, strong and growing asset to liability overcollateralization (PADR of 1.09) and skilled program management. All of these factors in combination are expected to enable the program to continue to remain strong over time.RATING OUTLOOKMoody’s outlook for the rating is stable. We expect the portfolio composition, the solid overcollateralization and active management of Colorado Housing and Finance Authority to result in stable program financial position.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING- Not applicable for the Class I bonds which are rated Aaa (sf).FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING- The ratings of the Class I bonds could come under pressure if the Indenture experiences a significant decline in asset-to-debt ratios and/or profitability, and/or other unforeseen events that lead to lower financial performance.- Downgrade of the United States Government.LEGAL SECURITYThe bonds are payable from the revenues and assets pledged under the Single Family Mortgage Bonds Indenture dated December 1, 2009 (Master Indenture), as amended. The 2022AA Bonds are being issued as Class I Bonds which are special, limited obligations of the Authority payable solely from the MBS and certain other revenues, assets and moneys pledged under the Homeownership Indenture.USE OF PROCEEDSProceeds of the 2022AA Bonds are expected to be used to finance the purchase of approximately $69,907,763 aggregate principal amount of certain MBS (« Ginnie Mae Certificates ») guaranteed by the Government National Mortgage Association (« GNMA ») as further described herein (the « 2022AA MBS Portfolio »). The Ginnie Mae Certificates included in the 2022AA MBS Portfolio will be backed by Mortgage Loans originated or purchased by the Authority under its Single Family Mortgage Program (the « 2022AA Mortgage Loans »). Other available funds of the Authority will be used to pay accrued interest in connection with the purchase of the 2022AA MBS Portfolio and costs of issuance in connection with the issuance of the 2022AA Bonds.PROFILEBonds are authorized to be issued pursuant to the Colorado Housing and Finance Authority Act and are being issued and secured under the Master Indenture. The Homeownership Indenture provides for three classes of Bonds or other Obligations thereunder – Class I, Class II and Class III Obligations. The 2022AA Bonds are being issued as Class I Bonds which are special, limited obligations of the Authority payable solely from the MBS and certain other revenues, assets and moneys pledged under the Homeownership Indenture as described herein on an equal and ratable basis with all other Class I Obligations now or hereafter outstanding under the Homeownership Indenture. Additional Bonds or other Obligations may be issued or incurred by the Authority under the Homeownership Indenture in each of the three Classes and as General Obligations of the Authority upon delivery of a Cash Flow Certificate and satisfaction of certain other conditions as set forth in the Homeownership Indenture.METHODOLOGYThe principal methodology used in this rating was US Housing Finance Agency Single-Family Housing Methodology published in October 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1154478. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.REGULATORY DISCLOSURESFor further specification of Moody’s key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. 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