During the fiscal year, Utah Housing Corporation has been able to raise capital to fund the new loan production from the sale of GNMA Mortgage Backed Securities (MBS) or other negotiated business partnerships for the sale of its loans. These new capital sources are needed because of the continued disruption in the municipal housing bond market, which has been the traditional source of capital to fund the single family programs. The Corporation has been able to effectively reinvent its business model.
The current year operations reflects a very successful shift away from tax exempt mortgage revenue bonds as the only source of capital for the affordable housing programs. The Corporation produced a record $522.3 million of new single family loans during the fiscal year. These loans were funded by new innovative capital sources. The Corporation sold $355.8 million of loans as GNMA MBS securities to investors. In addition, $99.6 million of loans were funded from the proceeds of collateralized notes payable under its CRA Participation Program and $66.9 million of loans were funded from taxable single family mortgage revenue bond proceeds.
The Corporation produced $7.7 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.