University of Virginia Library

ESTABLISHMENT OF THE INTEREST RATE FOR THE FACULTY MORTGAGE
LOAN PROGRAM BASED ON AN INDEX

• The following resolution was adopted:
• WHEREAS, the University currently provides a Faculty Mortgage Loan Program for eligible faculty and administrators; and
• WHEREAS, the Faculty Mortgage Loan Program interest rate typically is reviewed and updated by the Board of Visitors at the four regular meetings each year; and
• WHEREAS, the Board of Visitors desires to update the interest rate on a more frequent and standard basis;
• NOW THEREFORE BE IT RESOLVED that the Faculty Mortgage Loan Program interest rate be determined in the following manner, effective October 15, 1989:
• 1. The Faculty Mortgage Loan Program interest rate will be indexed to the Federal Home Loan Mortgage Corporation net yield on 30-year fixed rate loans for delivery within 60 days (FHLMC Rate).
• 2. The interest rate on Faculty Mortgages will be determined by adding 3/8% (a standard processing charge) to the FHLMC Rate and subtracting 1.0% as a discount to eligible borrowers, rounded to the nearest 1/8 percent.
• 3. Borrowers will receive the lower of the rate on the day of application or the rate on the date of commitment.
• 4. Interest rates will be set on a semi-monthly basis on the last business day of the month to be effective on the first business day of the next month and on the last business day preceding the 15th of the month to be effective on the 15th of the month or the first business day after the 15th of the month.