Cal-Mortgage

Application Process

Cal-Mortgage Loan Insurance application packages are available by phone request, (916) 319-8800; by e-mailing Cal-Mortgage Loan Insurance or by writing to Cal-Mortgage Loan Insurance Division, 400 R Street, Suite 470, Sacramento, CA 95811-6213.

Loan insurance requests are reviewed for adherence to specific laws and regulations, credit worthiness, and community needs.

There is a non-refundable application fee of $500 due when the application is filed. A certification and inspection fee of four tenths of one percent (0.4 percent) of the amount insured and an insurance premium fee is due at the close of escrow. The one time insurance premium is based on the credit rating of the applicant by Standard & Poors, Fitch, or Moodys. Unrated projects pay a 3% premium. Click here for more information about the insurance premium fee schedule.

The following is a brief description of the loan insurance application review process. Detailed information is contained in the application instruction package.

  1. Preliminary Project Review (No fees due at this time): Upon receipt of specific documents, which includes audited financial statements for the prior three years, copies of current licenses, and other documents described in the application instruction package, an Account Manager is assigned to discuss the proposed project, visit the site, introduce themselves to the Board of Directors/Trustees, and determine the applicant's eligibility to submit a formal application for consideration.
  2. Formal Application Review: At this time the Account Manager commences the application review process and the non-refundable application fee of $500 is paid by the applicant. The Account Manager reviews the additional information and makes an eligibility determination.
  3. Formal Application: Financial Feasibility Review: Additional documents are required, including a Financial Feasibility Study prepared by a paid financial consultant who is not an employee of the applicant. There may be an exception to this requirement if the borrowing is less than $5 million. If this is the case, the applicant will consult with the Account Manager.
  4. To continue with the process: The Account Manager, his/her supervisor, and the Cal-Mortgage Division's Deputy Director must recommend approval of the project to an advisory committee and the Director. Approval of an application will include standard and/or special conditions.
  5. Review by the Advisory Loan Insurance Committee: The Committee holds a public meeting to discuss the proposed application for the project. After input is solicited from the staff, the applicant, and community, the Committee decides whether to recommend the project to the OSHPD Director for approval.
  6. Issuance of a commitment to insure a loan: If the Director agrees with the recommendations to insure the loan, a conditional letter of commitment is issued.
  7. Sale of the Bonds: Conditions included in the letter of commitment must be satisfied concurrent with the sale of the bonds.
  8. Close of Escrow

Participants in the application process include:

  • The Borrower
  • The Borrower's Attorney
  • Cal-Mortgage Staff
  • Cal-Mortgage Staff Counsel
  • The Advisory Loan Insurance Committee
  • Bond Counsel
  • Financial Feasibility Consultant
  • Investment Banker
  • Special Counsel
  • Treasurer's Office Staff
  • Financial Institution Trust Officer
  • Title Company
  • Escrow Company
  • Cal-EPA Staff

See: California Health Facility Construction Loan Insurance Law and Related Laws, including California Code of Regulations, Title 22, Division 7, Chapter 5 entitled "Health Facility Construction Loan Insurance," at Volume 31, pages 1214 to 1219.

Contact us at:

Cal-Mortgage Loan Insurance Division
Office of Statewide Health Planning and Development
400 R Street, Suite 470
Sacramento, CA 95811

E-mail Cal-Mortgage
Phone (916) 319-8800
Fax (916) 445-2837

Page last revised: June 25, 2013 11:21 AM