| CMG MI Home Preservation Loan Modification Program |
| Eligible Lender |
The submitting lender must be the current servicer and/or originator of the existing mortgage and have the original underwriting file |
| Mortgage Insurer |
The loan must already be insured by CMG MI and the certificate must be current and in-force |
| Distressed Markets |
CMG MI’s Distressed Markets Policy does not apply to this program |
| MI Coverage |
- MI coverage percentage will be the same on the existing loan. Increases to coverage are not allowed.
- The type of mortgage insurance on the loan cannot be changed. A borrower-paid mortgage insurance policy will remain as a borrower-paid mortgage insurance policy.
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| MI Premium Rate |
- The MI premium rate (in basis points) will remain the same. If the unpaid principal balance of the modified loan is greater than the original loan amount, the premium amount charged will increase.
- The premium renewal may be changed from constant to amortizing.
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| MI Certificate Number |
The CMG MI certificate number will remain the same. The existing certificate will be modified with new terms. |
| Unpaid Principal Balance |
- No penalties, processing or late fees can be capitalized into the UPB
- The following items can be capitalized into the existing UPB:
- Past Due Hazard Premiums, HOA Dues, Interest, Property Taxes
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| Loan Type |
- The member should not be modified into a more risky loan type.
- The following loan types are eligible:
- Fully amortizing fixed-rate/fixed payment
- Adjustable rate mortgage with an initial fixed rate of no less than 5 years
- Interest-only loans for limited circumstances where needed to allow sustainable payment
- The modified loan cannot provide for potential or scheduled negative amortization
- Interest-only loans should be converted to a fixed-rate, fully amortizing loan
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| Amortization Term |
Maximum 40-year amortization term |
| Property Type |
The property type is the same as the original insured loan. |
| Occupancy |
The occupancy is the same as the original insured loan. |
| Borrowers |
The modification is for the currently insured member(s); no assumptions. Changes due to divorce or death could result in a removal or name change of the insured member(s). |
| Borrower Impact |
The modified loan must improve the member’s financial position which may include the following:
- Reduction in interest rate
- Reduction in P & I payment
- Reduction in principal balance
- Extending the ARM fixed-rate period
- Extending the loan or amortization term
- Providing a more stable payment product
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| Documentation/Verification |
- Verbal verification of employment is required to be performed by the lender for all loans
- Modification plan shows positive cash flow for member after all payments are reworked
- Member's monthly mortgage payment is reduced
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| Other |
The original representations of the Insured remain intact and in full force. The Credit Union and/or Servicer represent and warrant that all the information as indicated on the CMG MI Modification Form is true and accurate. CMG MI continues to reserve all rights under its Master Policy, including the right to rescind coverage for reasons stated in the Master Policy or in accordance with applicable law. Credit Union and/or Servicer must provide to CMG MI the original loan file and/or refinance or modification file upon CMG MI's request. |