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Customer Letter | Summary of Changes | Ineligibility Chart
CMG MI Program Guideline Changes
Effective July 1, 2008
Effective July 1, 2008, CMG Mortgage Insurance Company (CMG MI) has made changes to our program guidelines in response to developments in the overall mortgage market.
Additionally, please note the following:
- Changes supersede previously issued CMG MI approved program variations
- Changes apply regardless of submission channel to CMG MI
- Changes apply regardless of any Automated Underwriting System (AUS) recommendation or decision
Changes to Conforming & Non-Conforming Program:
LTV/Loan Amount
- LTV = 95.01 – 97.00%
- Minimum 700 loan representative credit score
- Maximum Loan Amount = $600,000
- LTV = 97.01 – 100.00%
- Minimum 700 loan representative credit score
- Contributions and concessions are not eligible for mortgage insurance
Loan Type
- Potential Negative Amortization ARMs and Option Payment Mortgages are not eligible for mortgage insurance
Interest Only
- Maximum LTV/CLTV is 95.00%
- Minimum 680 loan representative credit score
Loan Purpose
- Maximum $50,000 Cash-Out
- Second Homes and Investment Properties are not eligible for Cash-Out Refinances
Nontraditional Credit
- Loans with nontraditional credit are not eligible for delivery via the CMG MI delegated channel. They must be submitted to a CMG MI underwriting office for review.
Eligible Properties
Changes to A-Minus Program:
LTV/Loan Amount
- Maximum LTV is 90.00%
- Second Homes are not eligible for mortgage insurance
Loan Purpose
- Cash-Out Refinances are not eligible for mortgage insurance
Eligible Properties
- 2-4 Unit properties and manufactured homes are not eligible for mortgage insurance
Changes to Construction-To-Permanent Program:
LTV/Loan Amount
- Second Homes are not eligible for mortgage insurance
Interest Only
- Minimum fixed period of 5 years
Loan Purpose
- Cash-Out Refinances are not eligible for mortgage insurance
Credit History
- Minimum 680 loan representative credit score
The following program guideline changes applies to all programs:
Multiple Loans to a Borrower
- CMG MI will insure up to 3 loans to a borrower with a maximum risk exposure of $300,000 (maximum risk exposure defined as aggregate of original loan amount x percent of MI coverage)
- Within the 3 loans to a borrower limit, CMG MI will only accept the maximum amount on the following:
- Primary Home – 1 loan maximum
- Second Home – 1 loan maximum
- Investment Property – 1 loan maximum
The CMG MI Affordable and Limited Doc Programs have been discontinued.
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. |