Colorado Housing and Finance Authority (CHFA)

eNews
10.02.2008

Home Finance

We are writing to you today to provide an update on the state of CHFA in terms of the current market. As you are no doubt aware, the financial market situation has affected the entire lending and credit market. The municipal bond market is currently frozen and few bonds are being issued. We have staff continually monitoring the situation but it is unclear how long it will last. However, we feel it is important to respond proactively. The financial market woes have greatly increased our cost of capital in some cases, and in others effectively terminated our capital sources. As a result, we have raised rates for our single family programs by more than 50 basis points. These increases are necessary is to offset what we project the current and future costs of capital and plans of finance will require.

CHFA has always been responsible and prudent in our operations and we will continue to be so. We will share updates as we have them.

In the meantime, the CHFA commitment to financial literacy and homebuyer education is unwavering. We strongly encourage you and your customers to access our free education products and to be as informed as possible about the choices they are making in their home purchases.

Please contact Karen Harkin at 303.297.7327 or Cris White at 303.297.7373 with any questions you might have.

Thank you,
CHFA Home Finance