The State of New York Mortgage Agency ("the Agency") is expected to come to market with a $127,000,0001 bond sale in Homeowner Mortgage Revenue Bonds.
Series 208: $85,000,0001 Non-AMT
A portion of the Fixed Rate Series 208 Bonds are available on their date of issuance: (i) to purchase recently originated mortgage loans financed on a temporary basis with Agency funds (which will become Mortgage Loans upon acquisition), (ii) to purchase new Mortgage Loans, (iii) to finance Second Lien Down Payment Assistance Loans, (iv) to pay certain program costs, and (v) to pay costs of issuance.
The remaining portion of the proceeds of the Series 208 Bonds are expected to refund and replace certain of the Agency's outstanding bonds (including Prior Series Bonds).
Series 209: $42,000,0001 AMT
A portion of the proceeds of the Series 209 bonds are expected to refund and replace certain of the Agency’s outstanding bonds (including Prior Series Bonds).
For both series of bonds: The bonds are special obligations of the Agency payable solely from and secured by the Pledged Property. The bonds are not secured by any fund or account that is subject to replenishment by the State. The Agency has no taxing power. The bonds are not a debt of the State or of any municipality, and neither the State nor any municipality is liable on the bonds, nor are the bonds payable out of any funds other than those of the Agency pledged therefor.
Traditionally, municipal bonds will be subject to optional call features. Housing bonds are securities backed by mortgages and mortgage loan repayments. Although not reflected as part of a traditional "call schedule," these bonds can be called at any time from the prepayment of principal on the housing authority's underlying mortgages, and therefore are continuously callable and subject to extraordinary redemption (ER) provisions. Please review the structure on the day of the pricing before placing an order.
The bond sale offers attractive benefits to individual investors, including: prices and yields that match those available to institutional investors; the potential for stable income through the call dates; and, for New York residents, federal and state tax exemption on the bond coupon payments.
How to place an order
The offering is expected to price the week of February 26, although market conditions and/or the discretion of the issuer may alter the anticipated timeline. Individual investors can place orders online or by calling a Fidelity representative at 800-544-5372. To stay up-to-date on pricing, credit rating changes, and more, please sign up for Fidelity Alerts or visit our New Issue Municipal Bond offerings page.