What's New
Standard & Poor's Has Affirmed CMG MI's AA- Rating
On April 15, 2008, Standard & Poor’s (S&P) released its report on CMG Mortgage Insurance Company (CMG MI). The company’s “AA-” rating was affirmed with a Negative Outlook.
The report stated that "the insurer financial strength rating on CMG MI is based on its leadership position within its niche focus on credit unions, its effective use of operational support from parents, the very strong credit quality of credit unions' customers and its strong operating performance."
CMG MI was also removed from S&P's CreditWatch with negative implications. Click here to read the S&P Report.
Want to Learn the Bear Facts?
CMG MI’s Newest Online Contest Launches April 21, 2008!
If you’re finding the current mortgage environment bear-y scary, CMG MI has an exciting new contest for you. Play The Bear Facts for 4 weeks starting April 21 and learn some valuable information about successful mortgage lending during a downturn.
There are 500 winners each week! All you have to do is visit our special contest Web page, read the posted question and answer it correctly. Then complete the contact information form, so we can enter you into our weekly drawing. Our 500 randomly chosen weekly winners will win their very own Bear – for some much-needed Bear hugs!
Grin and bear it – by playing The Bear Facts! For more information, contact your CMG MI Account Executive or visit our contest Web page.
Spring 2008 ERET Report Focuses on House Prices, Economic Trends
The new Spring 2008 edition of PMI’s Economic and Real Estate TrendsSM (ERET Report) is now available.
Read the whole issue cover-to-cover online!
The Spring 2008 Risk Index is based on fourth-quarter Office of Federal Housing Enterprise Oversight (OFHEO) data. Thirteen of the nation’s Top 50 MSAs are in the highest risk rank, with a greater than 60 percent chance that home prices will be lower in two years. Risk remains largely concentrated in a number of MSAs in California and Florida, as well as in Las Vegas, NV, and Phoenix, AZ. Risk scores translate directly into an estimated percentage risk that home prices will be lower in two years. The MSAs with the highest risk scores were Riverside/San Bernardino/Ontario, CA (93 percent), Las Vegas (91 percent), and Orlando (85 percent).
“Excess supply is responsible for much of the risk we’re seeing in the market,” said David W. Berson, Chief Economist and Strategist for The PMI Group. "The excess supply of housing in the United States is 9.2 months for existing homes (the 20-year average has been 6) and 9.8 months for new homes (the 20-year average has been 5.5)."
It's essential reading for Credit Unions involved in mortgage lending!
The ERET Report is available to Credit Union customers of CMG Mortgage Insurance Company (CMG MI) through a special arrangement with PMI Mortgage Insurance Co., one of our parent companies.
CMG MI Introduces a New Zip Code Map for Distressed Markets
On April 14, 2008, CMG MI announced our new Distressed Markets Policy, which restricted maximum financing for properties located in distressed and declining markets.
To help our customers identify these markets, we’ve launched a new Zip Code Map on our Web site. It's a great new tool that can help you quickly and easily identify markets that are subject to our Distressed Markets Policy. Start using it today – and be sure to bookmark this useful tool!
Read the Latest Issue of Headlines
CMG MI's new Headlines has important information on our April 14 guideline changes and the new Distressed Markets Policy. Plus the April issue features information on our exciting new online contest, The Bear Facts, and some great flyers you can download and print for distribution to your Members. Read the new Headlines today!
CMG MI Announces A-Minus Guideline Changes for All Markets, New Policy for Distressed and Declining Markets
Effective April 14, 2008
Based on our assessment of sophisticated risk modeling tools, various home price index models, and delinquency rates, we have observed significant challenges and market downturns in many areas of the country. As a result of this, and in order to continue to support your ability to facilitate homeownership for qualified Members, we are introducing changes to our A-Minus (FICO® score <620) guidelines for all markets and restricting maximum financing for properties located in distressed and declining markets.
These changes take effect April 14, 2008. You can learn more about the new A-Minus guidelines by clicking here and prepare your Credit Union for the new CMG MI Distressed Markets Policy by clicking here.
Predicting the Future of the U.S. Housing Market
Top Economist at CMG MI Parent Company Reads the “Tea Leaves” on CNBC
The Chief Economist of one of CMG MI's parent companies, PMI Mortgage Insurance Co., was interviewed in early February by CNBC's Steve Liesman on the floor of the American Securitization Forum in Las Vegas. David Berson, who previously served as Chief Economist at Fannie Mae, shared his views on where the U.S. residential housing market now stands on the road to recovery. Click here to view the CNBC interview on PMI's Web site.
CMG MI Announces Secondary Market Training for Credit Union Leadership
Strategic participation in the Secondary Market is critical for a Credit Union’s long-term success. To help Credit Unions take an active role, CMG MI has developed a new 2-day, fee-based course that teaches Credit Union leadership step-by-step how to originate, price, negotiate and sell loans into the Secondary Market in order to achieve key strategic goals:
- Enhance liquidity and make more mortgage loans
- Foster loyal “Member for Life” relationships with Membership
- Manage assets and risk to generate non-interest income
- Establish your Credit Union as a Preferred Financial Institution (PFI)
It’s a unique opportunity for your Credit Union. Learn more about CMG MI’s Secondary Market Training!
Effective February 25, 2008 – CMG MI Program Guideline Changes
On February 25, 2008, CMG Mortgage Insurance Company (CMG MI) will introduce key changes to our program guidelines so that they appropriately reflect developments in the current marketplace. By making these changes, we will be able to continue providing mortgage insurance that meets the business needs of Credit Unions and their Members.
Please be sure to review the changes and implement any necessary changes to your systems.
Changes will affect the following CMG MI programs:
- General Program - Conforming
- General Program – Non-Conforming
- A-Minus Program
- Limited Doc Program
Learn more by clicking here.
Five Leading Credit Union Executives Explain How You Can Benefit from the Credit Crunch
The December 2007 edition of ACUMA’s Pipeline Magazine features an article by Linda Emmerich, CMG MI’s Business Development Manager. In "Crunch Time: Why the Credit Crunch is a Turning-Point for Credit Unions," Linda interviews five senior executives from Credit Unions across the country for their insights into the current economic situation.
All five are members of the Mortgage Insight Panel (MIP), an advisory council of industry executives who work with CMG MI to educate Credit Union leadership on the value of real estate lending.
Read the complete article here (PDF/617KB).
Mortgage Insurance is Now Tax-Deductible Through 2010!
On December 20th, 2007, President Bush signed the bill that makes mortgage insurance premiums tax-deductible over the next three years. It’s good news for homebuyers with low- or moderate-incomes, as those with adjusted gross household incomes of $100,000 or less will continue to be eligible to deduct their MI premium payments from their taxes.*
CMG MI applauds the decision of Congress and the President to extend this important deduction for homebuyers. We’ll be forwarding our customers more information as it becomes available. You can also check our Web site regularly on our special Tax-Deductible MI page.
*CMG MI cannot provide tax advice. Taxpayers should consult their own tax advisors concerning applicability of this new deduction to their particular circumstances under the Internal Revenue Code and the laws of any other taxing jurisdiction. This information is not intended or written to be used, and it cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties.
Effective February 8, 2008 – New Single Premium Rates!
CMG MI will be updating our Single Premium rates in 2008! Effective February 8, pending state approvals, we’re introducing key changes to our payment plan for this product, as well as new surcharges for loans that have the potential to negatively amortize.
Read more.
CMG MI Releases Executive White Paper - "The Basics of Mortgage Lending for Credit Unions"
The Paper was developed by the Mortgage Insight Panel, a select group of Credit Union professionals who work closely with CMG MI to help educate Credit Union leadership about the value of real estate lending . The Paper focuses on how mortgage lending can drive long-term relationships with members and outlines practical strategies for credit unions seeking to enter the mortgage marketplace.
Read a press release about the Executive White Paper here.
Read the Executive White Paper here.
Brian Shepherd Discusses Subprime Implications with CU Management Magazine
CMG MI’s Senior Vice President and General Manager, Brian Shepherd, was interviewed by CU Management Magazine for its December issue. In "Subprime Seismograph," Brian talks about the implications of the subprime mess for Credit Unions - and the opportunities that it offers. Click here to read more.
New CMG MI Pricing, Policy Changes Effective October 22, 2007
CMG MI has introduced a new payment plan and made other important changes to our pricing. It’s essential that you notify your branches and any staff, as well as implement any necessary changes to your internal systems. Read more.
Alan Bahr Joins CMG MI as Director of Secondary Markets and National Accounts
CMG MI is pleased to announce that Alan Bahr has been appointed Director of Secondary Market and National Accounts, effective immediately. Alan has an extensive background in the areas of capital markets, consulting, financial product management and structured transactions. One of his key responsibilities is to assist and guide Credit Unions who want to pursue active participation in the Secondary Market.
Read more about Alan by clicking here.
Announcing GO MI - So You Go Where Your Members Go!
CMG MI introduces GO mortgage insurance (MI) for Portable Mortgages! Young families, military personnel, relocating professionals, retirees and empty-nesters – they’re all on the move, and your Credit Union can move with them. Reach out to these valuable Members by offering the Portable Option on their mortgages – and insure them with GO MI!
Read more.
CMG MI’s Brian Shepherd Talks to Credit Union Business About Secondary Market Strategy
CMG MI’s Senior Vice President and General Manager, Brian Shepherd, was interviewed along with other industry leaders for an article in the August 2007 issue of Credit Union Business. In “Carefully Pursue the Secondary Market,” Brian advises Credit Unions that disciplined selling into the Secondary Market can help them reduce their loan-to-share ratios, generate income from mortgage fees and cross-selling opportunities, and offer more loan products to Members.
Read the complete article!
Order MI Certificates from CMG MI through FICS Loan Producer for Windows®
If your Credit Union uses FICS Loan Producer for Windows, you can now easily order mortgage insurance from CMG MI! Click here for more information.
Order MI from CMG MI through Fiserv® EasyLender
Now Credit Unions that use EasyLender can order mortgage insurance from CMG MI! Click here for more information.
Order MI from CMG MI through Interlinq® E3!
Credit Unions using the Interlinq E3 Connect Service may now order mortgage insurance from CMG MI. Click here for more information.
CMG MI's HLPR Discount Program for HLPR Loans
CMG MI offers discounted MI Rates for HLPR loans - both the original HLPR and the 3 new variations introduced by CUNA.* It's a great way to attract first-time homebuyers and protect your Credit Union at the same time, since insured HLPR loans result in lower monthly payments and are more readily salable on the secondary market. The HLPR Discount Program is now available on e-cmgmi.
Click here to learn more about the rates and other information for our HLPR Discount Program.
*Program may not be available in all states.
CMG MI Introduces Community Heroes
More than 25 million credit union Members are Community Heroes – firefighters, police officers, teachers, healthcare workers and military personnel. Many are unable to buy homes in the communities they serve because of high home prices.
You may be able to qualify these everyday heroes for homeownership using CMG MI’s Community Heroes program. Mortgages originated under Fannie Mae’s MyCommunityMortgage™ Community Solutions and Freddie Mac’s Home Possible Neighborhood Solution are eligible for reduced MI coverage requirements provided by Community Heroes. Learn more about Community Heroes by clicking here.
Fannie Mae® Discontinues MI Service
e-cmgmi Ready to Support Credit Unions
On February 28, 2007, Fannie Mae retired its DU ConnectionsTM and the MI Service from its widely used Desktop Underwriter® automated underwriting tool. Credit Unions have been asked to prepare their transition to an alternative MI service.
CMG MI recommends that our credit union customers transfer to e-cmgmi, if it is not already embedded within your credit union’s loan origination system. Our e-cmgmi system is one of the easiest and fastest ways to order mortgage insurance, as well as perform servicing functions on insured loans. Contact your CMG MI Account Executive for more information, and to get set up with a user ID and password.
Use the Fidelity Platform to Activate Your CMG MI Policies
Fidelity National Information Services has announced that CMG MI customers can now accept policy activations through Fidelity’s mortgage servicing platform (MSP). Read more.
Are You Aware of the Florida Assessment for Hurricane Emergencies?
Starting January 1, 2007, the State of Florida has issued an Emergency Order requiring all licensed property and casualty insurance companies, including mortgage guaranty insurers, to collect from Florida policyholders a special assessment of 1% of direct written premiums.
What does this mean for your Credit Union? Click here to learn more about the Florida Assessment, your obligations and CMG MI’s own efforts to make the process as easy as possible for our customers.
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