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Distressed and Declining Markets
Effective January 8, 2010 – Changes to the Distressed Markets Policy and List
Effective November 6, 2009 – Changes to the Distressed Markets Policy and List
Effective October 2, 2009 – Changes to the Distressed Markets Policy and List
Effective August 7, 2009 – Changes to the Distressed Markets Policy and List
Effective April 6, 2009 – Changes to the Distressed Markets Policy and List
Effective March 6, 2009 – Changes to the Distressed Markets Policy and List
Effective December 15, 2008 – Changes to the Distressed Markets Policy and List.
CMG MI employs a variety of risk management tools to help assess key factors of the housing market, and the real estate lending environment, as well as loan performance. Based on our assessment of these sophisticated tools, various home price index models and delinquency rates, we have observed significant challenges and market downturns in many areas of the country during the past several months.
As a result of housing market performance, and in order to continue to provide support for your ability to facilitate sustainable homeownership for qualified borrowers, CMG MI has updated its Distressed Markets Policy that restricts maximum financing for properties located in distressed and declining markets. Distressed and declining markets are defined as:
- specific geographic areas with property values that have already been influenced by foreclosure, unemployment, and other factors affecting the property values in those areas, and
- specific geographic areas with property values that have been declining or are likely to decline.
Please be aware that the CMG MI Distressed Markets List will be updated quarterly or as frequently as needed. You can check back here frequently to see the latest list. You can also use our Zip Code Map to quickly find out if a market is subject to the Distressed Markets Policy.
Your Credit Union needs to review all of the important changes to our policy and make any necessary changes to your systems. You should also make every effort to notify your staff and branches.
Please make any necessary updates to your internal systems. CMG MI recommends that you notify your staff and branches of the changes and the effective date as soon as possible.
We strongly recommend you read the following:
You should also use our handy Zip Code Map to help identify markets affected by CMG MI's Distressed Markets Pollicy.
CMG MI is committed to achieving affordable, responsible and sustainable homeownership in all of the communities we serve, and we appreciate the opportunity to work with you to achieve this goal. If you have any questions regarding these changes, please contact your CMG MI Account Executive. |