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Protection Prgm\HAF MPP examples scenarios.doc
C.A.R. HOUSING AFFORDABILITY FUND
MORTGAGE PROTECTION PROGRAM
The Mortgage Protection Program offered by the California Association of REALTORS®
Housing Affordability Fund provides a combination of involuntary unemployment, accidental
disability and accidental death insurance protection for qualified first-time home buyers.
Before involuntary unemployment insurance can be utilized, there is an initial “vesting period” of
six (6) months and a four (4) month "actively at work" requirement. These periods can run
concurrently, so you must be enrolled for at least six (6) months and also be working for at least 4
consecutive months immediately prior to the date your involuntary unemployment begins before
you can have an unemployment event qualify for a claim. Additionally, there is a one (1) month
“waiting period” before benefits would be paid.
The vesting period is the amount of time you would have to wait before becoming eligible for any
benefit and the waiting period is the amount of time after you become unemployed before
payments can start.
If you become unemployed anytime before the initial vesting period is over, you will not be
eligible to file a claim, and you will have to return to work for at least 4 consecutive months
before eligibility begins. The unemployment claims procedure requires documentation of
registration with California’s unemployment office which will verify the date of your
unemployment.
EXAMPLE: Buyer purchases a primary residence in California using a California
REALTOR® and escrow is opened on May 1, 2009 and closes on June 15, 2009. Buyer
applies for and obtains the HAF MPP insurance policy on July 1, 2009 which covers the
buyer until June 30, 1010.
Scenario 1:
Q.
Buyer is employed during all of 2009 but is laid off on February 1, 2010. Can the
buyer make a claim for the unemp