WEST SACRAMENTO, Calif. (May 20, 2019) – The California State Teachers’ Retirement System today announced the opening of its eighth member center, in Fresno’s Civic Center Square.
Other CalSTRS service centers are in Glendale, Irvine, Riverside, Redding, Santa Clara, San Diego, and at the CalSTRS headquarters in West Sacramento.
WEST SACRAMENTO, Calif. (May 15, 2019) – The California State Teachers’ Retirement System today announced its acquisition of the majority interest in Fairfield Residential Company LLC from Brookfield Asset Management. Brookfield retained its interest in the investment manager of Fairfield’s affiliated real estate funds. Recently CalSTRS adopted a Collaborative Model for investments across all asset classes in its portfolio. This approach supports identifying and investing in strategic opportunities, such as the acquisition of real estate operating companies like Fairfield.
WEST SACRAMENTO, Calif. (May 9, 2019) – The Teachers’ Retirement Board today received the results of the actuarial valuation for the CalSTRS Defined Benefit Program as of June 30, 2018. The actuarial valuation provides a snapshot-in-time of the system’s financial health, in addition to monitoring the system’s funding status and its ability to meet long-term commitments.
Home Loan Program Team: Solange Brooks, CalSTRS Portfolio Manager, Executive Unit; Michael Warmerdam, CalSTRS Investment Officer, Executive Unit; Lisa Kashiwamura, CalSTRS Executive Unit
The California State Teachers’ Retirement System Home Loan Program was originally created as a result of legislation in 1984. It was designed to add member value by providing CalSTRS members with access to homeownership in California via a market rate mortgage loan, while concurrently meeting the investment goals of the system by generating a mortgage asset.
The HLP started with conventional 15 and 30 year fixed-rate products but evolved over the years in response to the needs of our members. This evolution resulted in the development of low down payment products such as the 95/5 and 80/17 programs that support the practical homeownership ambitions of our members. In the fall of 2011, new mortgage originations were suspended due to the strategic decision by the program’s master servicing agent and program administrator to exit the correspondent lending business nationwide.
At the September 10, 2013 Investment Committee meeting, the Chief Investment Officer announced the indefinite suspension of origination activities related to resuming mortgage originations due to current market conditions. The announcement of the suspension has been posted on the CalSTRS website under the Home Loan Program section and printed in the latest member newsletter.
The following graph compares the Home Loan Program portfolio’s monthly delinquency rate with state and national data made publicly available by Lender Processing Services, a leading provider of loan performance analytics.
The table below provides the latest update on the CalSTRS owned second mortgages generated through the previously offered 80/17 and 95/5 programs over the last several years. This table was first presented in the HLP’s mid-year report for 2011.
The information included is grouped by vintage year using data available through October 31, 2013. Payments on these “deferred seconds” are not required during the first five years after origination. (The associated first liens are fully amortized and represent 80 percent of the total amount funded for 80/17 mortgages, 95 percent for 95/5 mortgages.)
CalSTRS participates in the federal government’s Making Homes Affordable programs which are designed to help struggling homeowners prevent avoidable foreclosures. Freddie Mac serves as the U.S. Department of the Treasury’s compliance agent for MHA and Fannie Mae is the programs’ administrator. In this section, we touch upon the two most significant pieces of MHA, both of which are scheduled to expire at the end of 2015.
As of the end of 2013, we have suspended new origination activity indefinitely. We continue to focus our efforts on managing the existing Home Loan Program mortgage portfolio and other investment assignments.
