The Mortgage Origination Programs was created by the University of California to offset the negative impact of California housing prices by providing competitive first mortgages to eligible Davis faculty and senior management to assist them in the purchase of a principal residence near their campus.

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

• Hold senior management positions;
• 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: All loans are fully amortized with terms up to thirty years with an optional term of forty 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 and charge no points, lender fees or private mortgage insurance.

Adjustment: The interest rate is adjusted annually, on the anniversary date of the promissory note.

The base 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. To derive at a new interest rate, the administrative fee of .25% will be added to this adjusted base rate.

Lifetime Adjustment Cap: The MOP loan does not have a lifetime adjustment cap.

Amortization: MOP loans are fully amortized. The do not have any negative amortization. Maximum Loan Amount (for MOP loan as sole financing): Each campus determines maximum loan amounts. The current maximum loan allowed for the Davis campus is $575,000.00 for property purchased within the city of Davis and $450,000.00 for other surrounding cities.

Property Guidelines:

• Properties 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.

Repayment: Monthly repayment is made through payroll deduction. Repayment in full is required six months after separation from the University, unless separation is due to retirement or disability.

Prepayment: MOP loans carry no prepayment penalties.