California Office of Statewide Health Planning & Development

Cal-Mortgage Loan Insurance
Actuarial Study

The California Health Facility Construction Loan Insurance Program (the Program) was authorized by a voter initiative in 1968. Modeled after federal home mortgage programs, the Program makes it possible for nonprofit and public owned healthcare facilities to obtain private financing, without cost to taxpayers, to develop or expand their services in communities throughout California. Without such a guarantee, many of these facilities simply could not arrange the financing required to serve their communities.

Under the administration of the Office of Statewide Health Planning and Development (OSHPD), the Program insures loans to nonprofit and public health facilities for construction projects that improve access to needed healthcare. OSHPD can insure loans to nonprofit public benefit corporations or public entities (cities, counties, hospital districts, or joint power authorities) in which the State of California guarantees the payments of principal and interest on the loans. The loan insurance allows borrowers access to lower interest rates.

The California Health Facility Construction Loan Insurance Law (the Insurance Law) established the Health Facility Construction Loan Insurance Fund, which is used as a depository of fees and insurance premiums and maybe used to pay administrative costs of the Program and shortfalls resulting from defaults by insured borrowers.

Section 129330 of the Insurance Law requires that Cal-Mortgage obtain, in each even numbered year, an actuarial study to determine the reserve sufficiency of funds. The purpose of the study is to examine the portfolio of existing insured loans and provide an estimate of reserve funds necessary to respond adequately to potential foreseeable risks, including extraordinary administrative expenses and actual defaults.

Actuarial Study

• 2010 Actuarial Study with Executive Summary(PDF 291KB)
• 2008 Actuarial Study Executive Summary by Oliver Wyman (PDF 82KB)
  
• 2008 Actuarial Study by Oliver Wyman (PDF 254KB)

Older Actuarial reports are available upon request.