This memorandum states and clarifies the terms and conditions applicable to the Bryn Mawr College Mortgage Plan as it has been developed, enlarged and administered over a period of years from a modest beginning.
Subject to the availability of investment funds as determined from time to time by the Board of Trustees, and subject to the approval in each case by the Treasurer, mortgages will be granted to eligible applicants on the following terms:
The applicant must be a person who is (1) a member of the General Faculty with the rank of Professor, Associate Professor or Assistant Professor, with a tenure track appointment; (2) an administrator with faculty status; (3) the Executive Director of the Alumnae Association; or (4) the head of an administrative office whose services to the College in terms of value and longevity are, in the opinion of the President, such as to justify participation in the Plan by the applicant as a benefit for employer and employee.
2. Use and Location of Property
The property must be the principal residence of the applicant and located in Pennsylvania within a radius of twenty-five miles from the campus.
3. Mortgage Terms
Mortgages will be granted for the purpose of purchasing homes only. Mortgages will not be granted for properties owned by eligible employees prior to their employment at the College or prior to their becoming eligible for the Mortgage Program. The program does not provide for home improvement loans or refinancing of existing mortgages.
The interest rate on all mortgages will be the Applicable Federal Rate, rounded up to the nearest quarter percent, at the time of application. All mortgages will be fixed-rate mortgages.
c. Maximum Amount
The maximum amount for any College mortgage at this time is 85% of the appraised value of the property up to $350,000.
d. Minimum Cash Down Payment
The minimum down payment is 15% of the purchase price of the property.
e. Maturity Date
The College will grant a twenty-, thirty- or forty-year mortgage. No one may participate in the Bryn Mawr College Mortgage Plan for more than forty years.
f. Amortization of Principal
Principal and interest are to be paid to the Treasurer of Bryn Mawr College in equal monthly installments so as fully to amortize the mortgage at the expiration of its term. The usual method of payment will be through payroll deduction.
g. Insurance and Taxes
Each property shall be insured at settlement by title insurance in an amount not less than the amount of the mortgage and insured by an insurer approved by the College for a similar amount against risk of fire with extended coverage. Insurance policies will contain the usual mortgagee clauses. Within thirty days after the end of each taxable year, the mortgagor shall submit to the Controller's Office evidence that all real estate taxes on the property for the year in question have been paid in full and that insurance premium payments are current.
The unpaid balance of principal may be prepaid at any time, without penalty. The unpaid balance of principal must be prepaid at the time that the property ceases to be used as the principal residence of the mortgagor.
i. Severance of Employment
If the mortgagor ceases to be employed by the College for any reason, the remaining principal of the mortgage and accrued interest thereon shall be paid to the College within one year after termination of employment occurs.
j. Amendments to Plan
The Board of Trustees, which is solely responsible for the conservation and investment of the College's funds, will review the Plan at least every three years and reserves the right at any time to alter or amend the Plan or to revoke it in its entirety without, however, affecting mortgages committed or granted prior to any such action.
The Application Form for a Bryn Mawr College mortgage can be obtained from the Chief Administrator's Office (and here). The application will be forwarded to The Bryn Mawr Trust Company, 80l Lancaster Avenue , Bryn Mawr, Pennsylvania, for processing. Our current contact there is John Watson (610-581-4781). The Bank will perform a credit check and make a recommendation regarding the approval of the mortgage to the Chief Administrative Officer. The Treasurer may approve any application on which the recommendation of Bryn Mawr Trust meets the terms of the Plan.
Someone selected by Bryn Mawr Trust will appraise the current fair market value of the property to be mortgaged. Mortgage documents will be prepared by the Bank. The fee for their services is $2,000 and will be paid by the applicant to The Bryn Mawr Trust Company at the time of application, whether or not the mortgage is granted.