OVERVIEW:

 

The Mortgage Origination Program (MOP) was created by the University of California to support the recruitment and retention of faculty and Senior Managers by assisting them in the purchase of a principal residence near their campus.

 

MOP offers a 40-year loan with a one-year variable rate based upon an internal University rate. While the standard term will be 30 years, borrowers may request a shorter or longer term up to the 40-year maximum.

 

MOP is administered by the University's Office of Loan Programs, located in Oakland, California.

 

Please contact your Campus Housing Programs Representative or our office if you have any questions regarding the Mortgage Origination Program.

ELIGIBILITY REQUIREMENTS:

• Full-time University Appointees who are:
  • Members of the Academic Senate or hold an equivalent title
  • Members of the Senior Management Group
• Each campus (or Lab) determines participation based on recruitment or retention needs.
• Property must be a principal place of residence for primary borrower.
• Only for a single family residence or a condominium.
• Only one MOP loan per participant.
• Loan may not be used for construction financing.
• Repayment in full is required six months after separation from the University (unless for retirement or disability).
• Loans are non-assumable.

WHY CHOOSE MOP?

HOW IS THE MOP INTEREST RATE DETERMINED?

 

The University maintains a working capital account (Short Term Investment Pool, or STIP) that is invested in a broad spectrum of investments with a maximum maturity of five years.

 

To determine the interest rate for MOP loans, the rate of return on the STIP account is calculated quarterly. The rate of return for the last four quarters is averaged and an administrative fee of .25 is added.

 

The rate is used for new MOP loans as well as MOP loans due for their annual rate adjustment. The maximum annual rate adjustment is 1% (up or down) from the current rate.

 

As shown on the chart below, loan rates for the MOP Program have traditionally fluctuated less than most indices used by private lenders.

Since 1993, the MOP Note Rate has been under 7%

1. The fixed rate is the U.S. average of conventional 1st home loan mortgages for new home purchases (source: Federal Housing Finance Board).
2. The ARM rate is the T-Bill rate, defined as the monthly average rate on the U.S. Treasury securities, adjusted to a constant maturity of one year, plus a 2.75% margin. Thereafter, the full index and margin is applied. The ARM rate shown does not reflect any teaser rate.
3. The MOP note rate is equal to the four quarter average of the rate of return of the University's Short Term Investment Pool plus an administrative fee.

CAMPUS SURVEY RESPONSES (97.2% satisfactory program rating)

"Great Program and people. Thank you."

 

"Buying a new home is always stressful. This was by far the easiest home purchase I've ever made-all thanks to your staff."

 

"Campus Representative and OLP Representative of Oakland Office were both terrific - very helpful, courteous, knowledgeable and professional."

 

"We are very satisfied with the loan program. We think such a program helps faculty tremendously. Shopping for a mortgage loan could be a very time and energy consuming process. With your help, we were able to finish the process fast with satisfaction. Thank you!"

 

"I probably wouldn't have bought a house without this program, its very existence was the most important factor. Thanks."

 

"The loan officers at both my campus and at the Univ. of California were extremely competent, helpful and quick in their turn around time. As a first time home buyer, I was very impressed and pleased with their service. Thanks especially to OLP and Campus Representative."

 

"This is a wonderful program, which is as far as I know quite unique in public Universities."

 

Non Discrimination Statement

 

The University of California prohibits discrimination against or harassment of any person employed by or seeking employment with the University on the basis of race, color, national origin, religion, sex, physical or mental disability, medical condition (cancer-related), ancestry, marital status, age, sexual orientation, citizenship, or status as a Vietnam-era veteran or special disabled veteran.

 

The University of California is an affirmative action/equal opportunity employer.The University undertakes affirmative action to assure equal employment opportunity for underutilized minorities and women, for persons with disabilities, and for Vietnam-era veterans and special disabled veterans.

 

University policy is intended to be consistent with the provisions of applicable State and Federal law.