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Changes to CMG MI’s Distressed Markets Policy and List – Effective November 6, 2009
- Effective 11/6/09, CMG MI is pleased to announce that more U.S. states and MSAs have been removed from our Distressed Markets List except for the MSAs/MSADs noted next to the individual States, as follows:
- Also effective 11/6/09, the following MSA/MSADs are removed from the CMG MI Distressed Markets List:
- MSAs/MSADs:
- Cambridge-Newton-Framingham, MA (MSAD)
- Charleston-North Charleston-Summerville, SC
- Chattanooga, TN-GA
- Cleveland-Elyria-Mentor, OH
- Columbus, OH
- Corvallis, OR
- Fayetteville-Springdale-Rogers, AR-MO
- Hartford-East Hartford-West Hartford, CT
- Mankato-North Mankato, MN
- Milwaukee-Waukesha-West Allis, WI
- Mount Vernon-Anacortes, WA
- Ogden-Clearfield, UT
- Olympia, WA
- Philadelphia, PA (MSAD)
- Richmond, VA
- Seattle-Bellevue-Everett, WA (MSAD)
- Spokane, WA
- St. Louis, MO-IL
- York-Hanover, PA
Changes to the Distressed Markets Policy
Also effective 11/6/09, CMG MI announces a major change to the Distressed Markets Policy. We are introducing a 2-tiered approach to insuring mortgage loans for properties in Distressed Markets. The Tier 1 Distressed Markets Policy covers those Distressed Markets in which there have been improvements in home prices, but which are still potentially vulnerable to high unemployment and increasing mortgage delinquencies.
CMG MI will insure mortgage loans for Tier 1 Distressed Markets properties as follows:
- Distressed Markets Policy - Tier 1
- LTV/Loan Amount:
- Loan Amounts up to $417,000
- Maximum 95% LTV/CLTV to $417,000
- Minimum 700 loan representative credit score
- Maximum 90% LTV/CLTV to $417,000
- Minimum 680 loan representative credit score
- Loan Amounts > $417,000
- Maximum 90% LTV/CLTV to $500,000
- Minimum 720 loan representative credit score
- Maximum 85% LTV/CLTV to $625,500
- Minimum 720 loan representative credit score
- Property Type:
- Condominiums
- Maximum 90% LTV/CLTV to $417,000
- Minimum 700 loan representative credit score
Also effective 11/6/09, Distressed Markets that are not categorized as Tier 1 or have not been removed from the Distressed Markets List are automatically listed as Tier 2 Distressed Markets. CMG MI’s Tier 2 Distressed Markets Policy applies to these markets and there are no further guideline changes at this time for insuring them.
For a complete list of CMG MI’s Tier 1 and Tier 2 Distressed Markets, please click here.
To determine if a property is subject to either the Tier 1 or Tier 2 CMG MI Distressed Markets Policy, please visit the CMG MI ZipMap at www.cmgmi.com/map.
Please review Credit Risk Bulletin #5-09 for more details of other 11/6/09 changes.
Please read our Guidelines Comparison for additional information on the 11/6/09 changes or visit www.cmgmi.com/guidelines.
Questions? Please contact your CMG MI Account Executive. |