California Housing Finance Agency Comments on S&P Report

SACRAMENTO, Calif.--(Business Wire)--
The California Housing Finance Agency today commented on the announcement by
Standard & Poor`s Ratings Services that it has placed the Agency`s AA- issuer
credit rating and the rating of its home mortgage revenue bonds indenture on
"CreditWatch with negative implications."

"CalHFA will continue to provide additional information to Standard & Poor`s to
demonstrate that the Agency has sufficient capital capacity to cover any
potential shortfalls on the home mortgage revenue bonds. We believe our reserves
will be more than adequate for S&P to affirm our AA- rating."

"While CalHFA operates exclusively in California and faces the unique issues
affecting our state`s real estate market, the Agency`s lending was distinct.
CalHFA was not and is not involved in subprime or Alt-A loans. CalHFA continues
to apply the highest underwriting standards and full documentation requirements
to all of our mortgage lending."

"Over the past three years, CalHFA has taken steps to responsibly manage the
Agency`s loan portfolio and reduce the impact of home price declines by reducing
LTVs, requiring higher FICO scores and enhancing loss mitigation efforts. In
addition, the Agency has significantly reduced its exposure to variable rate
debt and also has substantial capital and liquidity resources to manage the
current dislocation in the variable rate market."

About CalHFA

Created in 1975 as the state`s affordable housing bank, the California Housing
Finance Agency has invested over $14 billion in non-taxpayer funds to help more
than 150,000 California families live in a home of their own with a mortgage
they can afford.

California Housing Finance Agency
Ken Giebel, 916-322-0249
Fax: 916-322-2345
kgiebel@calhfa.ca.gov
www.calhfa.ca.gov

Copyright Business Wire 2009