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Presentation and discussion regarding the pending issuance of Texas Department of Housing and Community Affairs Residential Mortgage Revenue Bonds, Series 2026 A (Non-AMT)
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BACKGROUND
On October 9, 2025, the TDHCA Governing Board approved Resolution 26-001 authorizing issuance of Mortgage Revenue Bonds by the Department in an amount not to exceed $1.1 billion for Fiscal Year 2026. This will be the first issuance for the 2026 Fiscal Year.
On August 13, 2025, the Department issued $250 million Residential Mortgage Revenue Bonds, Series 2025 D (Non-AMT). The bonds settled on September 27, 2025 and proceeds were fully reserved in early November.
Despite some compression in the rate differential between bond loans and TBA loans, demand remains strong, and market conditions remain conducive for the issuance of additional series of tax-exempt 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 25 to 37.5 basis points lower than mortgage rates available under the TMP (aka TBA) Program.
The Department utilizes a continuous lending model whereby bond-funded mortgage loans are always available to borrowers. Demand remains strong and the Department currently has a pipeline of $100 million to be funded by RMRB 2026 Series A.
2026 A Bonds
The 2026 A Bonds will be issued in a maximum par amount of $250 million; total bond proceeds (par amount of bonds plus bond premium) will not exceed $270 million.
A portion of the proceeds, not to exceed par of $26,995,000 will utilize recycled volume cap and will be 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.
The proceeds of the Series 2026 A Bonds will be used to finance the...
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