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Presentation and discussion regarding the pending issuance of Texas Department of Housing and Community Affairs Residential Mortgage Revenue Bonds, Series 2025 B (Non-AMT) and Series 2025 C (Taxable)
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BACKGROUND
On October 10, 2024, the TDHCA Governing Board approved Resolution 25-004 authorizing issuance of Mortgage Revenue Bonds by the Department in an amount not to exceed $1.1 billion for Fiscal Year 2025. After the issuance of RMRB 2025BC, the Department will have $675 million of issuance authority remaining.
On January 14, 2025, the Department issued $175 million Residential Mortgage Revenue Bonds, Series 2025 A (Non-AMT). The bonds settled on February 12, 2025. As of March 20, 2025, mortgage loans using these funds were fully reserved.
Market conditions remain conducive to the issuance of additional series of tax-exempt and taxable mortgage revenue bonds under the Department's Residential Mortgage Revenue Bond Trust Indenture (RMRB) to finance mortgage loans for very low, low, and moderate income homebuyers. THDCA is currently offering Bond Funded Mortgage loans 37.5 to 50 basis points lower than mortgage rates available under the TMP (aka TBA) Program.
The Department has moved to a continuous lending model whereby bond-funded mortgage loans are always available to borrowers. Demand is strong and the Department is building a pipeline of loans to be funded by Texas Department of Housing and Community Affairs, Residential Mortgage Revenue Bonds, 2025 Series B (Non-AMT) (2024 B Bonds) and 2025 Series C (Taxable) (2024 C Bonds).
2025 B and 2025 C Bonds
The 2025 B Bonds will be issued in a maximum par amount of $187.5 million; total bond proceeds (par amount of bonds plus bond premium) will not exceed $202 million. The 2024C Bonds will be issued in a maximum par amount of $62.5 million; total bond proceeds (par amount of bonds plus premium) will not exceed $67.5 million.
A portion of the proceeds, not to exceed par of $22,655,000...
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