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CHFA reports higher interest income, larger MBS holdings and low multifamily delinquency in June
Summary
CHFA staff reported June results showing mortgage loan and investment interest revenue $10.9 million above budget, a $65 million increase in the MBS portfolio to above $3 billion, and low multifamily delinquency; CHFA also reported higher bond interest expense and higher servicer fees year‑to‑date.
CHFA staff told the Finance/Audit Committee on July 25 that June financial performance and portfolio metrics showed stronger interest income, growth in mortgage‑backed securities holdings and low delinquency in multifamily loans.
Allison Murphy, director of financial reporting and control, presented June financials: mortgage loan and investment interest revenue was $10,900,000 above budget through June and $16,900,000 higher than last year. Bond interest expense was $4,300,000 above budget through June and $14,400,000 higher than last year, driven in part by a larger outstanding bond balance compared with last year. Servicer fees were $4,800,000 above budget through June, attributed to increased single‑family production. Administrative expenses, excluding salaries and benefits, were modestly lower year‑over‑year.
John Chilson, director of portfolio management, summarized production and delinquency metrics: the mortgage‑backed securities portfolio increased by $65,000,000 from May and exceeded $3,000,000,000; the whole loan portfolio declined by 35 loans (about $5,000,000) to a $1,100,000,000 balance; whole‑loan delinquency for May was 4.19% (59 basis points below the national average), and combined single‑family delinquency, including MBS exposure, was 1.14%. The carrying balance for loans in foreclosure decreased by $3,600,000 year‑over‑year to $12,600,000 and the number of loans in foreclosure declined by 27.
Chilson also reported program activity: CHFA funded 50 Downpayment Assistance loans in June totaling $560,000 (average ~ $11,000) and 234 Time To Own forgivable loans totaling $7,400,000 (average ~ $31,600). For multifamily lending, four new loan closings in June raised the multifamily portfolio to 598 loans with a balance of $1,400,000,000; combined single‑family and multifamily assets totaled $5,500,000,000.
Hazim Taib presented the quarterly investment and swap report: the investment portfolio book value declined by about $25,400,000 to $4,200,000,000 due to bond debt service payments and bond closings, while program assets rose about $151,000,000 to $3,000,000,000 as MBS production increased. Weighted yield to maturity increased two basis points to 4.27%. The swap portfolio notional decreased by $47,000,000 to $878,000,000 with 48 swaps outstanding across eight counterparties and a weighted pay rate of 2.93%; the mark‑to‑market value was $49,320,000. Taib noted CHFA reduced variable‑rate exposure and pay rates over the last decade.
The committee approved the June 27, 2024 Finance/Audit Committee minutes and adjourned at 9:38 a.m.
