Office of Loan Programs

MOP Loan Process
Sally Hopkins
August 2000

In a competitive real estate market, finding a simple, convenient and affordable home loan can be challenging. The Mortgage Origination Program (often referred to as "MOP") not only offers simplicity, convenience and affordability, but also makes owning a home in California a reality. In our March 2000 newsletter, we featured the article "Why Choose MOP" comparing MOP's key features to those of conventional loans offered in the private sector. This article will provide you with an overview of the MOP loan process and what you can expect after your application is submitted.

Once you have been designated by your Department to participate in MOP, you must contact your campus' Housing Programs Representative to discuss the program parameters and eligibility criteria. Provided you meet the program eligibility criteria, your campus representative will give you an application package and a borrower checklist with a list of items to return to the campus representative with your application. The campus representative will then forward your loan application package to the Office of Loan Programs (OLP) in Oakland CA.

Once your application package is received at OLP, your loan will be assigned a processor and an underwriter who will work directly with all parties to the transaction. Your loan application and credit history will be evaluated to ensure you meet the credit and affordability underwriting guidelines. If you do, OLP will issue a Certificate of Pre-Approval that is good for 60 days and states that you qualify for a specified loan amount at the current program interest rate and is based on a review of credit, income and assets only, and not a specific property. For borrowers who are still looking for a home, this certificate is an excellent tool in a "seller's market."

For borrowers who have already entered into a sales contract agreement, your realtor must open an escrow account with a licensed escrow company and have all property-related documents (purchase contract, preliminary title report, inspection reports, etc.) forwarded to your campus representative. At that time, your campus representative will order a property appraisal report from a University-approved appraiser. Upon satisfactory review of all pertinent documentation, OLP will issue a loan commitment letter. This commitment letter outlines your approved loan amount, locked-in interest rate and other loan conditions, if any, and is valid for 60 days, after which time your loan may be subject to an interest rate change or re-verification of documents submitted.

After a loan commitment is issued, OLP will forward lender's instructions and the loan documents directly to your escrow company. After you sign the documents, escrow will forward them to OLP with a request to fund the loan. You will be required to provide a cashier's check or wire for the balance of your downpayment and closing costs to escrow at this time. Upon receipt of all required funds, escrow will forward the necessary loan documents to the county recorder's office for loan recording. After the deed of trust is recorded, you officially become the owner of the home.

The entire loan process normally take approximately 30 days; however, OLP has been able to meet customer needs in even shorter time frames. MOP offers a considerable advantage over other conventional loans, given its below-market interest rate, favorable underwriting parameters and the fact that the University does not charge any points or lender fees. And, since your loan is handled "in-house" by a University representative, who is just an e-mail or phone call away, MOP loans are quite convenient (and reassuring) when you're relocating and buying a home simultaneously.

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