CalSTRS suspended its member home-loan program Monday.
The decision temporarily cuts off a program that has made $5.9 billion worth of mortgages to 43,000 pension fund members since it was launched in 1984.
The suspension takes effect Friday. At that point, participants seeking new loans must have their applications submitted and their interest rates locked in.
The existing loan portfolio, which totals $388 million, won't be affected by the decision.
CalSTRS said the suspension became necessary after Bank of America, which runs the program, decided to sell the unit that oversees it.
Although it's CalSTRS' money that's being loaned out, BofA originates and services the loans.
"We don't have the staffing power to run the program by ourselves," said Ricardo Duran, a spokesman for the California State Teachers' Retirement System.
CalSTRS "will resume new loan activity as soon as a new partnership can be established," said Christopher Ailman, the fund's chief investment officer, in a press release.
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