Program Guideline Changes for All Programs - Effective 12/15/2008:

Effective December 15, 2008, CMG Mortgage Insurance Company (CMG MI) made changes to our program guidelines in response to developments in the overall mortgage market.

The following Guidelines became effective December 15, 2008:

• Guideline Comparison - New Updates
• Conforming & Non-Conforming Program
• A-Minus Program
• Construction-to-Perm Program

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 Distressed Markets Policy:

• The following states were added to our distressed markets list:
  • Arizona
  • Nevada



• The following state has a maximum 90.0% LTV/CLTV:
  • California



• The following states are subject to two (2) LTV/CLTV tiers on our distressed markets list:
  • Florida and Nevada:
    Maximum 95.0% LTV/CLTV or 90.0% LTV/CLTV as identified by MSA/MSADs, or non-MSA areas. Please view CMG MI's 12/15/08 Distressed Markets List for further details.



• The following MSA was removed from our distressed markets list:
  • Barnstable Town, MA



• Ineligible for Mortgage Insurance
  • Construction-To-Perm
  • Interest Only
  • 3-4 Unit Properties



• LTV/Loan Amount
  • Less than or equal to 90.0% LTV/CLTV to $417,000
    • Minimum 620 loan representative credit score
  • 90.01 – 95.0% LTV/CLTV to $417,000
    • Minimum 680 loan representative credit score
  • Less than or equal to 90.0% LTV/CLTV - $417,001-$700,000
    • Minimum 720 loan representative credit score
  • 90.01 - 95.0% LTV/CLTV - $417,001-$600,000
    • Minimum 740 loan representative credit score



• Second Homes
  • Maximum $417,000 loan amount
  • Minimum 720 loan representative credit score
  • Ineligible: AZ, CA, FL, & NV



• Condominiums
  • 90.0% LTV/CLTV to $417,000
    • Minimum 680 loan representative credit score
  • 90.0% LTV/CLTV to $650,000
    • Minimum 720 loan representative credit score



• 2-Unit Properties
  • Maximum $533,850 loan amount



• Manufactured Homes
  • Minimum 680 loan representative credit score



• Debt Ratios
  • Maximum 45%

To determine if a property is subject to the CMG MI Distressed Markets Policy, please visit the CMG MI ZipMap at http://www.cmgmi.com/map. Additional information regarding the CMG MI Distressed Markets Policy is available at: www.cmgmi.com/distressed_markets.

Changes to Conforming & Non-Conforming Program:

• LTV/Loan Amount
  • Owner-Occupied
    • 100.0% LTV to $550,000
      • Minimum 680 loan representative credit score
    • 97.0% LTV to $600,000
      • Minimum 680 loan representative credit score
  • Second Homes
    • 95.0% LTV to $550,000
      • Minimum 720 loan representative credit score
    • 90.0% LTV to $600,000
      • Minimum 680 loan representative credit score
  • Investment Properties
    • 85.0% LTV to $533,850
      • Minimum 720 loan representative credit score



• Cash-Out Refinance
  • 95.0% LTV to $417,000
    • Minimum 720 loan representative credit score
    • Maximum $25,000 cash back to borrower at closing
  • 90.0% LTV to $500,000
    • Minimum 660 loan representative credit score
    • Maximum $50,000 cash back to borrower at closing



• Nontraditional Credit
  • For pricing purposes, nontraditional credit will be treated as comparable to a 620 loan representative credit score.



• Debt Ratios
  • Owner-Occupied/Second Homes
    • Maximum 45% for LTVs greater than 95.0%, regardless of DU or LP recommendations
    • Maximum 50% for LTVs less than or equal to 95.0%, regardless of DU or LP recommendations
  • Investment Properties
    • Maximum 45%, regardless of DU or LP recommendations



• Minimum Down Payment
  • LTV/CLTVs ≤ 95.0%
    • Owner-Occupied
      • Loan representative credit score ≥ 660, minimum 3% own funds
      • Loan representative credit score 620-659, minimum 5% own funds



• Eligible Properties
  • 2-Unit Properties
    • Owner-Occupied
      • Minimum 680 loan representative credit score
    • Investment Properties
      • Minimum 740 loan representative credit score
  • Manufactured Homes
    • Owner-Occupied
      • 95.0% LTV to $417,000
        • Minimum 680 loan representative credit score
      • 90.0% LTV to $417,000
    • Second Home
      • 90.0% LTV to $417,000
  • Condominiums
    • Owner-Occupied
      • 100.0% LTV to $550,000
        • Minimum 680 loan representative credit score
      • 97.0% LTV to $600,000
        • Minimum 680 loan representative credit score
    • Second Home
      • 95.0% LTV to $550,000
        • Minimum 720 loan representative credit score
      • 90.0% LTV to $600,000
        • Minimum 680 loan representative credit score
    • Investment Properties
      • 85.0% LTV/CLTV to $533,850
        • Minimum 720 loan representative credit score
  • Ineligible:
    • 3-4 Unit Properties
    • Condotels

Changes to A-Minus Program:

The minimum loan representative credit score is 580.

Changes to Construction-To-Perm Program:

• LTV/Loan Amount
  • 95.0% LTV/CLTV to $417,000
    • Minimum 720 loan representative credit score
  • 90.0% LTV/CLTV to $650,000
    • Minimum 680 loan representative credit score
• Debt Ratios
  • Maximum 45%, regardless of DU or LP recommendations

The following program guideline changes applies to all programs:

• Credit Union Employee Loans
  Credit Union employee loans are not eligible for delivery via the CMG MI delegated channel. They must be submitted to the CMG MI Underwriting Network for review



• Primary Residence Conversion To Second Home or Investment Property
  This is for borrowers who are purchasing a new primary residence and will be converting their current residence to a second home or investment property. Please view CMG MI’s program guidelines for further details.



• Appraisals
  CMG MI has made changes to clarify appraisal requirements. Please view CMG MI's program guidelines for further details.

Complete CMG MI program guidelines are available at: www.cmgmi.com/guidelines.