Purpose
The Mortgage Origination Program is designed to offset the negative impact of California housing prices by providing competitive first deed of trust mortgages to eligible Berkeley faculty and senior management.
Eligibility
The eligible population for the program consists of full-time University appointees who:
- Hold Senior Management positions; or
- Are members of the Academic Senate; or
- Hold academic titles equivalent to titles held by Academic Senate members; or
- Hold the title of Acting Assistant Professor
Please note: The program is further restricted to eligible appointees who do not currently own, and have not, within the 12-month period preceding the issuance of the loan, owned a principal place of residence within a reasonable distance of the campus.
Loan Term
All loans are fully amortized with terms up to thirty years.
Loan Position
MOP loans must be secured on the property by a first deed of trust.
Loan Type
MOP loans have a variable rate.
Interest Rate
The Standard Rate is defined as the most recently available average rate of return earned by the Short-term Investment Pool (STIP) for the four quarters preceding the funding of the mortgage loan, plus an administrative fee component. The current administrative fee is .25%.
At no time will the Standard Rate be less than 3.25 percent.
Adjustment
The Standard Rate is adjusted annually, on the anniversary date of the promissory note.
The Standard Rate will be adjusted up or down, to a maximum of 1% annually, to the most recently available four quarter average of the STIP index, plus the administrative fee of .25%.
Lifetime Adjustment Cap
There is an interest rate cap of 10 percent over the starting rate on loans made on or after January 1, 2014.
MOP loans made prior to December 31, 2013 do not have a lifetime adjustment cap.
Amortization
MOP loans are fully amortized. They do not have any negative amortization.
Property Guidelines
- Property must be owner-occupied and must be a single-family residence (including condominiums and units within planned unit developments)
- Property must be the participant’s principal place of residence
- Property must be used primarily for residential non-income producing purposes
- Property must be 50% or more participant owned
Assumability
Loans under this program are not assumable.
Repayment
Monthly repayment is made through payroll deduction.
Prepayment
MOP loans carry no prepayment penalties.
Contact
For further information regarding MOP loans or other home loan options, please contact your campus home loan coordinator at facultyloans@berkeley.edu.