Cash Handling and Banking Services

GRADUATED PAYMENT-MORTGAGE ORIENTATION PROGRAM (GP-MOP)

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Purpose

The Graduated Payment Mortgage Origination Program (GP-MOP) was established in 2002. The GP-MOP Program provides for a lower start rate (also known as the Borrower Rate) to assist eligible faculty members and members of the Senior Management Group in the acquisition of a principal place of residence.

Eligibility

The eligible population for the program consists of full-time University appointees who:

  • Are members of the Senior Management Group; 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

Loan Term

GP-MOP loans are fully amortized with terms up to thirty years.

Loan Position

GP-MOP loans must be secured by the property with a first deed of trust.

Loan Type

GP-MOP loans have a graduated payment feature. The initial Borrower Rate is lower than the Standard MOP rate (Borrower Rate cannot be lower than 2.75%). The Borrower Rate will gradually increase over a specified period of time to the current MOP rate in effect at that time.

Interest Rate

The Borrower Rate can not be lower than 3%. The difference between the Standard Rate and the initial Borrower Rate is known as the Interest Rate Differential.

Adjustment

The Standard Rate is adjusted annually, on the anniversary date of the promissory note, with a maximum annual change, up or down, of 1%. The annual adjustment in the Borrower Rate is equal to the change in the Standard Rate, plus the annual reduction in the Interest Rate Differential (between .25 and .50). The resulting change in the Borrower Rate may exceed 1%.

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.
    Note: The value of the residence is defined as the lesser of the purchase price or current appraised value. The actual amount approved for each loan will be based on the completed evaluation of borrower credit and property value factors.

Assumability

Loans under this program are not assumable.

Repayment

Monthly repayment is made through payroll deduction.

For further information regarding GP-MOP loans or other home loan options, please contact your campus home loan coordinator at 510-643-8962.