Which of the following Expresses the Purpose of a Formal Written Loan Agreement

Home Loan Coordinator: The person designated as the Housing Loan Coordinator by the Chancellor of each campus and the Director of the laboratory. This person serves as the primary campus-level contact for loan applicants. Bridge loan: A temporary loan, usually less than 12 months, granted to a borrower if the net proceeds from the sale of a previous home are not available for the purchase of a new home. It is expected that a bridge loan will be repaid with the net proceeds of the sale of the previous residence. Short-term Investment Pool (STIP): Founded in FY1976, STIP is a pool of interest, income, liquidity and investments in which all groups of funds of the university participate, including permanent funds for payroll execution, operating costs and the construction of all university campuses and teaching hospitals. Service: The collection of payments and the management of transactions related to a mortgage loan. All MOP loans are provided by the Loan Programs Office. Deferred Payment Loan: A loan that allows the borrower to defer all monthly principal and interest payments until the promissory note maturity date, when the balance of the outstanding principal loan and accrued interest are due and payable. Date of Registration: The date on which a trust deed is officially registered in the records of the County Recorder in the county where the property is located. Subordination agreement: An agreement between the owner of a charge against real estate that allows that claim to take a worse position than other charges against the property. The University may, at its discretion, refuse to sign a subordination agreement.

Credit underwriting: Analyze risk and decide whether or not to lend to a potential buyer based on credit, employment, assets and other factors. Mortgage for Graduates: The Progressive Payment Mortgage (GP-MOP) is an alternative loan product under the Mortgage Origination Program (MOP) that results in a borrower rate initially below the most recently published Standard Rate (MOP). The borrower`s initial rate is given as a percentage below the standard interest rate, subject to a minimum interest rate of 3.25%. The indicated reduction in the policy interest rate is called the interest rate differential. The interest rate spread is expected to decrease annually between 0.25% and 0.50% until the borrower`s interest rate is equal to the standard interest rate. Homeowners` Association: An organization of homeowners who live in a particular development and whose primary purpose is to maintain and provide community facilities and services for the shared enjoyment of residents. Program: The term “program” refers to any loan granted under a University of California home loan program. Lump sum payment: Payment made on a promissory note – usually the last one for debt relief – which is significantly higher than other instalment payments made under the terms of the promissory note. The following terms and definitions are intended to give a simple and informal meaning to the words and phrases you see on our website that may not be familiar to you. The specific meaning of a term or expression depends on where and how it is used, as relevant documents, including signed agreements, client disclosures, internal program policy guides, and industry usage, determine its meaning in a particular context. The following terms and definitions have no binding effect for the purposes of contracts or other transactions with us.

Your Campus Housing Program representative or loan program office staff will be happy to answer your specific questions. Mortgage Origination Program (MOP): Founded in 1984 by the regents of the University of California, MOP uses funds from the university`s entire Short-Term Investment Pool (STIP) to create a variable interest deed of trust loans of up to 30 years to eligible faculty and members of the senior management group. The program offers loans at maximum amounts of 80% to 90% of the value, depending on the size of the loan, with the initial interest rate being the most recent four-quarter average rate of the University of California`s short term investment pool (STIP), plus a management fee component of 0.25%, subject to the applicable minimum interest rate. The maximum annual adjustment of the interest rate on a loan, up or down, is one per cent. Discount: An additional payment made to reduce the principal balance of a loan. Loan-to-value ratio (LTV): The ratio of the principal balance of a mortgage to the value of the secured property, determined by the purchase price or estimated value, whichever is lower. Processing: The preparation of a mortgage application and supporting documents for review by a lender. Application Checklist: A detailed list of documents that the borrower and the campus must provide to the Loan Programs Office for pre-approval or loan approval. Also known as Form OLP-09. Interest-only loan: A non-amortizing loan in which the lender receives interest during the term of the loan and the principal is repaid as a lump sum at maturity.

Capital-to-income ratio: The ratio, expressed as a percentage, that results when the costs of paying the principal and interest offered by a borrower are divided by the gross monthly income of the household. The maximum quota allowed for MOP loans is 40%. Also known as the P&I. Capital Ratio: The amount of debt, interest-free, that remains on a loan. Pre-approval: A certificate of pre-approval issued by the Loan Programs Office, which indicates that a borrower`s loan, assets and income have been verified and that the applicant is eligible for a program loan at a certain amount and interest rate. At the time of pre-approval, the initial interest rate shown is not “bound” and therefore may be changed prior to the issuance of a loan commitment letter. The initial interest rate is the program rate that is valid at the time a loan is granted. Loan Refusal Letter: A letter from the Loan Program Office rejecting a loan to a specific individual. Reasons for rejection may be credit history, lack of verifiable liquid funds, insufficient income, etc. Lender Escrow Instructions: Instructions prepared by the Loan Programs Office for an escrow or securities company that describe the documentation and procedures required before financing a loan. Title insurance: A policy usually issued by a title insurance company that insures a buyer and lender against errors in searching for securities. The cost of the owner`s policy is usually a percentage of the sale price and the lender`s policy is a percentage of the loan amount.

Right of withdrawal: The right to terminate a contract and return to the parties the same position they held before the conclusion of the contract. For a refinancing operation, a borrower has three working days from the signing of the loan documents to cancel the loan without penalties. The right of withdrawal does not apply to purchase transactions. Preliminary Disclosures: A generic term that refers to a group of disclosure forms that must be sent to a loan applicant under federal law. Forms include a loan estimate disclosure, a fair loan notice, and a California credit disclosure. Preliminary Securities Report: A securities search by a securities company before issuing a securities file or insurance bond required when processing a loan. Trustee: A person who owns legal ownership of one property for the benefit of another or for the purpose of ensuring the performance of an obligation. Co-borrower: Any person who assumes responsibility for the loan has a right of ownership of the property and intends to occupy the property as their principal residence. Anniversary date: The date on which the twelfth payment is due. This happens during the same calendar month and on the same day each year thereafter on each MOP promissory note. .