Guaranteed Mortgage Program
NOTICE: Effective 12/24/08
To: University Community
From: Office of Home Ownership Services
Given the historic nature of the turmoil in the U.S. real estate market over the past year, the Office of Home Ownership Services has been proud to be able to offer the Guaranteed Mortgage Program (GMP) of 105% financing in uninterrupted fashion. With the exit of GMAC as a lending partner in September, we were able to continue the program through our other partner, Advance Bank. However, with the further tightening of the credit markets and the overall continued deterioration in the broader economy, Advance recently informed us that they are unable to participate in the GMP as currently structured.
As a result of the GMAC and Advance decisions, The University will take the following steps:
- Effective 12/24/08 the University will suspend the Guaranteed Mortgage Program until further notice. Advance Bank will continue to partner with us in providing mortgage vehicles for faculty and staff interested in purchasing a home with the assistance of the Enhanced Forgivable Loan (EFL) (formerly the Enhanced Mortgage Program (EMP). We will also seek to add additional lenders in 2009 under this revised arrangement. If you are currently in the pipeline of approved purchasers you will be contacted directly by a representative from the Office.
- If you purchased your home through the GMP program previously, the suspension of the program has no impact on your mortgage.
- The University will continue to support the EFL (formerly EMP) and the process for obtaining the EFL (formerly EMP) will remain the same.
- The University will work with our banking partners to determine the right mix of programs we might offer under this changed landscape. We hope to announce any programmatic changes in time for the start of the new fiscal year (July 1, 2009) but that will be somewhat dependent upon the prevailing market conditions and how quickly our banking partners are able to commit to a specific, long-term, programmatic direction.
During these tumultuous times we will continue our long-standing commitment to the immediate West Philadelphia community and to helping faculty and staff with their homeownership needs. We look forward to offering a variety of programs aligned with the new direction of the real estate market. For more detailed information, or if you have any questions, please contact the Office of Home Ownership Services at 215-898-7742.
To download a copy of this notice, please click here.
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