The Board of Administration for CalPERS, the largest public employee pension fund in the United States, has voted to suspend the popular CalPERS Home Loan Program for their members. In a press release dated December 13, 2010, George Diehr, Chair of the CalPERS Investment Committee cited limited interest, an increasing number of delinquencies and a changing mortgage marketplace for the move. “This change allows us to redirect our resources and reduce the risk to the Fund”, stated Diehr.
The CalPERS Member Home Loan Program was launched twenty-nine years ago and offered a unique mortgage benefit for members, including, reduced lender fees through Preferred Mortgage Lenders, lower closing costs through participating partners, and a down payment assistance program that allowed members to borrow against their CalPERS retirement system for up to 100% of the down payment required.
VITEK Mortgage Group, a full service Mortgage Bank, has decided to step up to fill the void left by CalPERS, by creating a new and exciting program with many of the same features as those previously offered by CalPERS. This important market segment, which includes police officers, firefighters and other city, county and state workers, has over 1.6 Million active and retired members in California that will now be eligible for these benefits, exclusively available through VITEK Mortgage Group. By teaming up with our industry partners, we can now offer similar reduced lender fees, lower closing costs and down payment assistance programs for CalPERS members. This can amount to substantial savings for CalPERS members on a home purchase or refinance, when compared to other mortgage lenders.
VITEK Mortgage Group is scheduled to roll out this new program around February 1, 2011, at which time more specific details will be made available.