CMG MI A-Minus Guideline Changes
Effective April 14, 2008

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 members, CMG MI is making some significant changes to our A-Minus (FICO® Score <620) guidelines, effective April 14, 2008:

• For all markets, CMG MI will no longer insure loans with representative FICO® scores less than 575, regardless of the automated underwriting system (AUS) decisions.

 
• For all markets, for loans with representative FICO scores between 575 and 619, the maximum allowable LTV/CLTV is 95%, regardless of the AUS decisions.

Please review these changes and make any necessary changes to your internal systems. CMG MI also recommends that you notify your staff and branches as soon as possible.

Questions? Review our FAQ for the 4/14/08 A-Minus Changes, which also covers our new Distressed Markets Policy.