Governor Douglas and VHFA Applaud Treasury Action on Housing Finance Agency Assistance

" Despite the economic downturn, VHFA and other state HFA’s homeownership loan performance has remained strong. Nationally, almost twice as many loans were in foreclosure (4.3%), as Vermont’s loans (2.2%), according to the Mortgage Bankers Assoc (MBA), while only 0.9% of VHFA’s loans were in foreclosure. VHFA’s seriously delinquent mortgages have been less than 2%, compared with a national rate of almost 8%. HFAs did not engage in subprime lending, offering largely fixed-rate, 30-year loan products. VHFA’s rental housing portfolio is also extremely strong, but according to VHFA, many older properties are in need of recapitalization."