10 LENDING ACTIVITY

The objective of this program is to finance housing at below market interest rates, using the proceeds of tax-exempt and taxable revenue bonds, which are not obligations of the State of California, to make: (1) mortgage loans to qualified first-time homebuyers to finance the purchase of single family homes and (2) construction and purchase loans for the creation and preservation of multifamily housing projects, and (3) special needs housing loans by either acquisition, new construction, rehabilitation, or refinancing. The agency is financially self-supporting, setting loan interest rates slightly above its cost and charging fees for specific services to cover its lending costs and risks.

20 INSURANCE ACTIVITY

The Mortgage Insurance Services Division's objective is to encourage the preservation of existing housing and improve new housing opportunities by offering mortgage insurance products to homebuyers that might not otherwise qualify for a home loan. The program works with participating lenders, government agencies, government-sponsored enterprises, and the secondary mortgage market to develop and offer innovative homebuyer lending and mortgage insurance programs. The program is completely self-supporting and is not an obligation of the State of California. Program operations are supported primarily from premiums collected and the financial backing of the agency as a whole.