title
Report on the issuance of TDHCA Residential Mortgage Revenue Bonds 2026 Series A (Non-AMT)
end
BACKGROUND
On October 9, 2025, the TDHCA Governing Board approved Resolution 26-01 authorizing the issuance of Mortgage Revenue Bonds for Fiscal Year 2026, in an amount not to exceed $1.1 billion.
RMRB 2026 A Bonds
The Department issued $250 million Residential Mortgage Revenue Bonds Series 2026 A.
November 8, 2025 Program Funds Available for Reservation
December 30, 2025 Preliminary Official Statement Released
January 12, 2026 Bonds Priced and Bond Purchase Agreement Executed
January 12, 2026 Official Statement Released
February 17, 2026 Bond Closing
Premium & Issuer Contribution
Premium received was $10,254,100 for total bond proceeds of $260,254,100. The premium will fund down payment and closing cost assistance for loans originated through this bond issuance, as well as a portion of the lender compensation. Issuer Contribution was $3,908,613.35
Recycled Volume Cap
The Department utilized $26,995,000 in recycled volume cap and that portion of the proceeds was used to repay amounts owed under the Advances and Security Agreement between the Federal Home Loan Bank and the Department representing recycled repayments from September 1, 2025, through December 1, 2025.
Use of Proceeds
The proceeds of the RMRB Series 2026 A Bonds will be used to finance the purchase of tax-exempt eligible mortgage loans, including down payment assistance second loans, made to low to moderate income first-time homebuyers and veterans, and to pay a portion of the costs of issuance of the RMRB Series 2026 A Bonds.
Bond Structure
The Series 2026A Bonds consisted of $43.3 million of serial bonds (7/1/2027 - 7/1/2038), $119.2 million of par term bonds (2041, 2046, 2051, and 2056), $20.0 million of premium lockout term bonds (2046 - 104.628%, 2051 - 103.278%), and a $67.5 premium PAC bond (2057 -114.020% - 6.0Y). Issuing the RMRB 2026 A Bonds exclusively as tax-exempt will enable the Department to provide the lowest possible rates.
Ratings
Moody’s: Aa1
S&P: AA+
Borrowing Costs
Net NIC 4.881464%
Net TIC 4.741000%
2026 A Mortgage Loans
Mortgage loans will be 30-year, fixed rate loans guaranteed by FHA, VA, or USDA and pooled into Ginnie Mae MBS.
Down Payment Assistance
Borrowers have the choice of unassisted loans with no down payment assistance (DPA), or three (3) points of DPA, or four (4) points of DPA. DPA is offered as a 0% interest, non-amortizing, 30-year repayable second mortgage loan that is due on sale, refinance, or pay-off of the first loan.
Rates
Unassisted first mortgage loans from this transaction are currently offered at 5.375%, while 3% repayable DPA loans are 5.625% and 4% repayable DPA loans are 5.750%%. Targeted Area loans are offered 1/8th lower.
Financing Team
The financing team consisted of Bracewell LLP as Bond Counsel; McCall, Parkhurst & Horton, L.L.P. as Disclosure Counsel; CSG Advisors as Financial Advisor; and an underwriting team led by Morgan Stanley as Book Running Senior Manager, RBC, and Jefferies as co-senior managers, with Ramirez & Co., Inc., Piper Sandler & Co. Wells Fargo Securities, J.P. Morgan, and Loop Capital Markets LLC, as co-managers. Fidelity and Bank of America Securities were selling group members.
As of February 23, these funds are 75% reserved.
Exhibits
Attached is a detailed summary of the pricing that was prepared by Morgan Stanley.