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The Rating Outlook for the project pool account is Negative.
The Rating Outlook for the single family account is Stable.
KEY RATING DRIVERS
STRONG RISK-TO-CAPITAL RATIOS: The project and single-family accounts still maintain relatively low risk-to-capital ratios.
FINANCIAL SUPPORT: The state continues its financial support in the form of mortgage recording tax surcharge receipts (surtax receipts) of approximately
STRONG RESERVES: All reserves are invested in highly-rated, liquid assets.
HISTORICALLY STRONG: Loan losses have historically been low relative to the amount of risk insured.
DECREASED SNF RISK: The riskiest form of multi-family property, special needs facilities (SNFs), has decreased to 7% of the portfolio in 2012 from 20% in 2007.
WHAT COULD TRIGGER A RATING ACTION
INCREASING RISK-TO-CAPITAL TRENDS: Surtax receipts remained low albeit approximately 23% greater than in 2011 and SONYMA will transfer a
CONTINUED STATE HOUSING PRESSURES: Continued state housing pressures could continue to impact surtax receipts levels and subsequently reduce MIF revenue and increase risk-to-capital ratios.
INCREASED LOAN LOSSES: Although performance has historically been strong, an increase in delinquencies could result in higher loan losses from higher claims payments.
The MIF was created in 1978 as a separate operating unit of SONYMA and is made up of two accounts: the project pool account and the single-family account. The project pool account primarily insures mortgages on multi-family housing, cooperative housing, and housing for the elderly. To a smaller extent, the project pool account insures mortgages on special needs facilities (SNFs), elderly assisted-living residences, and retail and community service projects. The single-family account provides primary and pool insurance for single-family houses throughout the state of
The MIF's sources of revenues are in the form of mortgage recording tax surcharge receipts, investment earnings, fees, and premiums. MIF's main source of revenue is mortgage surtax receipts, which were estimated by SONYMA to be about
Additionally, a positive credit factor has been the decrease in risk of special needs facilities within the project pool account portfolio in comparison to previous years. Special needs facilities are the riskiest form of multifamily property due to their heavy reliance upon
Additional information is available at www.fitchratings.com. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
In addition to the sources of information identified in the Revenue-Supported Rating Criteria, this action was additionally informed by information from
--'Revenue-Supported Rating Criteria,'
Revenue-Supported Rating Criteria
Joseph Staffa, +1-212-908-0829
Source: Fitch Ratings
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