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Presentation and Discussion of Bond Finance and Home Ownership structure, products, processes, and the roles of third-party vendor relationships.
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BACKGROUND
The Bond Finance and Home Ownership Division assists Texas families and individuals of low-to-moderate income obtain home ownership.
Bond Finance administers the Department's Mortgage Revenue Bond (MRB) and Mortgage Lending Programs and is responsible for managing the Bond Indentures.
Homeownership manages the loan level interface and relationships with lenders, realtors, and borrowers in partnership with the Program Administrator and Master Servicer. Homeownership is responsible for marketing TDHCA's mortgage programs throughout the State of Texas.
TDHCA's Bond Finance Division is entirely self-funded, receiving no funds from Federal, State, or Local Governments. Bond Finance makes quarterly contributions to TDHCA to fund the Department's portion of expenses and shared services.
Bond Indentures
A Bond Indenture is a contractual agreement between the issuer and the trustee for the benefit of the bondholders. It outlines the terms and conditions of the bonds. It serves to protect the interests of bondholders by clearly defining their rights and the issuer's commitments.
TDHCA issues Mortgage Revenue Bonds (MRB) and purchases TDHCA-originated Government guaranteed Mortgage-Backed Securities (MBS) under two Bond Indentures: Residential Mortgage Revenue Bond (RMRB) and Single-Family Mortgage Revenue Bond (SFMRB). TDHCA is transitioning to issue out of RMRB exclusively going forward.
As of February 28, 2025, TDHCA's SFRMB and RMRB indentures held $3.09 billion in assets against $2.97 in liabilities for an overall parity ratio of 103.92%, as reported in the Department's Quarterly Investment Report at the April Board Meeting.
Bond Finance and Home Ownership Programs
Bond Finance and Home Ownership work in tandem to promote home ownership for qualifying low-to-moderate income Texas families and veter...
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