During the fiscal year, Utah Housing Corporation has been able to raise capital to fund the new loan production from the sale of Mortgage Backed Securities (MBS) or other negotiated business partnerships for the sale of its loans. These new capital sources are needed to meet the demands of the single family program. The Corporation has been able to effectively reinvent its business model.
The current year operations reflects a very successful shift to multiple sources of capital to fund the affordable housing programs. The Corporation produced a record $540 million of new single family loans during the fiscal year. These loans were funded by new innovative capital sources. The Corporation sold $273 million of loans as GNMA MBS securities to investors and an additional $103.1 million of loans as FNMA MBS securities. Also, $43.3 million of loans were funded from the proceeds of collateralized notes payable under its CRA Participation Program and $120.3 million of loans were funded from single family mortgage revenue bond proceeds.
The Corporation produced $14.3 million of net income generated mainly from the premiums received on the sale of its loans as GNMA MBS securities. This income is needed to maintain the Corporation's financial strength. The Corporation's ability to provide financing for its affordable housing program is dependent upon its continued financial strength. UHC's financial stability is reflected in the Corporation's bond rating. UHC continues to maintain an AAA credit rating on its bonds, the highest rating awarded to any housing finance institution in the nation.
The Corporation's whole loan program of federally insured mortgage loans along with its large cash equivalent balance represents the foundation of UHCs future financial vitality in these turbulent financial times.