P
ORTGAGE
O
RIGINATION
ROGRAM
HOME LOANS
Especially for UC Faculty
M
Why Choose MOP?
MOP Loans
PROGRAM OVERVIEW
Conventional Loans
Mortgage payments are made
through payroll deduction
Payments
Most payments are made
directly by the borrower
No prepayment penalty,
teaser rate, or
negative amortization
ARM
Features
Some ARM loans that appear
more attractive may have
certain limitations
No impounds required
Impounds
Most lenders require
impounds for loans with less
than 20% downpayment
Housing
Ratio
Maximum qualifying
mortgage payment-to-income
ratio is 40%
Maximum qualifying
overall debt-to-income
ratio is 48%
Maximum qualifying
housing payment-to-income
ratio is typically 33%
Maximum qualifying
overall debt-to-income
ratio is generally 43%
For loans up to $2,370,000*, a 10%
downpayment is required (90% LTV)
For loans over $2,370,000*, a 20%
downpayment is required (80% LTV)
*Loans in excess of $2,370,000
require additional approvals
Down
Payment
Regardless of the loan
amount, a 20% down
payment is required by most
lenders to avoid paying
PMI or a higher rate
No Private Mortgage Insurance
( PMI ) is required for any
MOP loan
PMI
Most lenders require PMI for
loans with a loan-to-value
(LTV) ratio above 80%
No Points or Lender Fees
Fees
Most lenders charge Points
(1% of loan amount),
and other Lender Fees
Personalized service by UC
Loan Representatives whose
goals are to assist in faculty
recruitment and retention
Customer
Service
In most cases, applicant will
work with a commissioned sales
representative
- Senior Management Group employees
Each campus determines participation from the above
group based on recruitment or retention needs
Property must be the principal place of residence for the
primary participant for the term of the loan
Repayment in full is required six months after separation from
the University (unless for University retirement or disability)
Participant must not have owned a primary residence within
the prior 12 months near work location
Property must be within a reasonable distance of
participant’s work location
Only for a single family residence (5 acreage limit) or a
condominium
Loan may not be used for construction nancing
Loans are not assumable
NOTE: There is no one mortgage type which is uniformly advantageous for all borrowers. Potential
applicants may want to explore other mortgage options to compare the respective features of
available programs.
The Mortgage Origination Program (MOP) was developed
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 work location.
MOP is administered by the University of California Home
Loan Program Corporation (UCHLP), located in Oakland,
California. Questions regarding the Mortgage Origination
Program should be directed to the Campus/Lab Housing
Programs Representative or UCHLP.
MOP provides rst deed of trust loans with a one-year
adjustable rate based upon an internal University index. The
maximum repayment term is 30 years.
ELIGIBILITY REQUIREMENTS
Full-time University Appointees who are:
- members of the Academic Senate or hold an
equivalent Title
- eligible members of UC Hastings College of the Law
Monthly payments are collected by payroll deduction
Since 2008, the MOP Note Rate has been under 5%
NOTE:
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 ve years.
To determine the interest rate for MOP loans, the
earnings rate of STIP is calculated quarterly. The
earnings rate for the most recently available four
quarters is averaged and an administrative fee of .25 is
added. The minimum Standard Rate is 3.25% for new
loans approved on or after August 1, 2019.
This rate is used for new MOP loans as well as MOP
loans due for their annual rate adjustment. The
maximum annual rate adjustment for each loan is 1%
(up or down) from the current rate. There is an interest
rate cap of 10% over the starting rate, for loans made
after January 1, 2014.
NOTE: The initial interest rate for each individual loan
will be the Program rate in effect at the time of loan
commitment.
As shown on the chart to the right, loan rates for the
MOP program have traditionally uctuated less than
most indices used by conventional lenders.
BORROWER SURVEY
RESPONSES
(
97.3% very satisfied
)
“I felt very fortunate to have received a UC Home
Loan. The program allowed us to take advantage of
this great opportunity. Without it, we may not have
taken this position in California.”
“The loan process was a great experience for us. The
staff made it clear, easy to understand and very quick.
Thank you!”
“[Campus Representative] and [OLP Representative]
were both very responsive and helpful throughout the
process. Our sellers had multiple bids for the house, and
one of the main reasons they chose us over the others
was because our realtor convinced them how reliable
and fast the UC MOP loan is. Thank you!”
This Program brochure is a general description of the Program and if there is a conict between the
Program brochure and the ofcial Program policies, the Program policies will prevail.
Mortgage Origination Program Interest Rate
Compared to Conventional Lending Rates
✽
✽
Rates for December each year
1. The xed 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. The ARM rate shown does not reect any teaser rate.
3. The MOP Note rate is equal to the four-quarter average earnings rate of the University’s Short Term Investment
Pool (STIP), plus an administrative fee of .25%, subject to the applicable minimum interest rate.
2013 2014 2016 2017 2019 2020 2021 2022
8.0%
6.0%
4.0%
2.0%
202320182015
FIXED
1
ARM
2
MOP
3
Equal Housing
Opportunity
University of California Home Loan Program Corporation
Office of Loan Programs
1111 Franklin Street, 6th Floor
Oakland, CA 94607-5200
Email: [email protected]
www.ucop.edu/loan-programs
Our Website Features:
Current and Historical MOP Rates
Program Contact Listing
•
Program Brochure
•
Annual Report
Other Tools/Resources: View My Loan Access
•
FAQ Page
Consumer Information Page
•
Campus Housing Links
•
Calculators
•
Glossary
NONDISCRIMINATION 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.
Inquiries regarding the University’s equal opportunity policies may be directed to: Provost and Executive Vice President-Academic Affairs (510) 987-9020 (for academic employee-related matters) or
to the Executive Vice President - Chief Operating Officer at (510) 987-9029 (for staff employee-related matters).
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