Ricardo Duran - September 20, 2013
CalSTR'S has decided to suspend new mortgage originations through its Home Loan Program because current market conditions do not favor more competitive products beyond what is already available to our members on the open market.
CalSTR'S remains committed to the Home Loan Program; however, current conditions make its re-launch impractical. CalSTR'S is striving to offer our members unique financial products while maintaining the Home Loan Program as a viable investment vehicle for the fund. These are two vital conditions for keeping the program running.
In the fall of 2011, the CalSTRS master servicing agent and program administrator for the Home Loan Program made the strategic decision to cease mortgage originations. This prompted CalSTRS to suspend its Home Loan Program. In March 2013, CalSTRS announced the selection of California-based Mountain West Financial as its new master servicing agent and program administrator with the expectation of announcing new program offerings sometime in September 2013. We regret that this expectation cannot be met at this time due to the factors described above.
We understand our members desire competitive products and value the security that comes with the CalSTRS name. That is why we will continue our relationship with our partner, Mountain West Financial, while we monitor the market for opportunities to re-launch the CalSTRS Home Loan Program at some later date.
If you are a first-time homebuyer or you live in a federally-designated target area, you may benefit from the EXTRA Credit Teacher Loan Program offered by the California Housing Finance Agency (CALHFA).