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CMG MI Program Guideline Changes for All Programs – Effective 10/2/09
Effective October 2, 2009, CMG Mortgage Insurance Company (CMG MI) is making a change to our program guidelines.
Changes to CMG MI’s Conforming & Non-Conforming Guidelines, Effective 10/2/09
CMG MI Conforming & Non-Conforming Guidelines Changes
Also effective today, 10/2/09, CMG MI is making changes to our Conforming & Non-Conforming Guidelines, as follows:
- CMG MI Coverages and Premiums - Please note that CMG MI is removing all caps for MI coverage, effective October 2, 2009, specifically the following:
- Maximum MI Coverage for LTVs:
- 85% LTV - Maximum 17%
- 90% LTV - Maximum 25%
- 95% LTV - Maximum 30%
- Loan Purpose - CLARIFICATION
- Ineligible: Construction-To-Perm
- Credit History
- Minimum of one credit score is required for each borrower, regardless of DU or LP recommendations. The credit report must be no more than 90 days old on the date the mortgage note is signed
- If the minimum payment for a debt is not stated on the credit report, five percent (5%) of the outstanding balance must be used when calculating the debt ratio or supporting documentation must be provided to support actual minimum payment
- Third Party Originations
- Loans that are not originated on behalf of a credit union are ineligible
- Appraisal
- All appraisals must be in writing or electronic. Standard format is as follows:
- Market Conditions Addendum to the Appraisal Report – Uniform Residential Appraisal Form (Fannie Mae Form 1004MC/Freddie Mac Form 71, dated March 2009)
The following should be noted:
- 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
For more information, please see the links below:
Changes to CMG MI’s Distressed Markets – Effective October 2, 2009
The 10/2/09 guidelines include changes to CMG MI’s Distressed Markets Policy and List.
In addition, CMG MI is introducing new MI application forms on Monday, September 28, 2009. Applications submitted before 10/2/09 should meet current guidelines; applications submitted on or after 10/2/09 should conform to the updated guidelines announced in this notification.
Questions? Please contact your CMG MI Account Executive. |