Moody’s Investors Service recently released a report on the current financial outlook for state housing finance agencies (HFAs).  Moody’s concludes while the U.S. housing market has begun to show signs of improvement, the fiscal outlook for the state HFA sector remains negative due to significant market and credit pressures such as high unemployment, low interest rates on investments, low conventional mortgage rates, low home prices relative to loan originations, weakened counterparty credit quality, high liquidity fees for variable rate debt, and the general uncertainty surrounding governmental policy.  However, despite negative pressures, Moody’s notes that HFAs have weathered the recession well and are well-positioned to return to a stable outlook should negative pressures diminish.

Click here to read the report.