Fitch Gives State HFAs a Stable Outlook in 2015

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State housing finance authorities will deleverage their bond programs, build equity and improve financial ratios, according to a Fitch Ratings report released this week.

State HFAs have eased off new bonds backed by revenue from mortgages, the report says. As a result, equity amongst the state authorities has improved while debt has decreased, allowing for more flexibility.

Fitch sees this trend continuing in 2015, giving the state HFAs a stable outlook, though the agency did warn that if homeowner numbers stay below historical levels that it could hinder them from issuing new bonds to facilitate growth.

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