Effective January 8, 2010 – CMG MI Distressed Markets Policies and List Changes

Effective 1/8/10, CMG MI announces changes to its Distressed Markets Tier 1 and Tier 2 Policy. 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. The Tier 2 Distressed Markets Policy covers those Distressed Markets which are projected to continue to experience more significant economic and/or housing downturns and are expected to take longer to improve.

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 http://www.cmgmi.com/map.

Please review Credit Risk Bulletin #1-10 for more details of the 1/8/10 changes.

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

Changes to Distressed Markets Policy – Tier 1 – Effective 1/8/10

• LTV/Loan Amount:
• Loan Amounts > $417,000
• CMG Single Premium Payment Plan
• Minimum 700 loan representative credit score


• Property Type:
• 2-units
• Maximum 95% LTV/CLTV to $533,850
• Minimum 700 loan representative credit score
• Condominiums
• Maximum 95% LTV/CLTV to $417,000
• Minimum 700 loan representative credit score
• Co-ops
• Maximum 90% LTV/CLTV to $417,000
• Minimum 680 loan representative credit score
• Manufactured Homes
• Maximum 90% LTV/CLTV to $417,000
• Minimum 700 loan representative credit score


• CMG MI will not insure:
• 3-4 Unit Properties
• Single-Wide Manufactured Homes

Changes to Distressed Markets Policy – Tier 2 – Effective 1/8/10

• LTV/Loan Amount
• Loan Amounts up to $417,000
• Maximum 90% LTV/CLTV to $417,000
• Properties located in Arizona, Florida, Michigan, and Nevada
• Minimum 720 loan representative credit score, regardless of property type
• Properties located in California Tier 2 MSA/MSAD
• Minimum 720 loan representative credit score, regardless of property type
• Properties located in all other states
• Minimum 680 loan representative credit score
• Loan Amounts > $417,000
• Maximum 85% LTV/CLTV to $625,500
• Minimum 740 loan representative credit score
• Ineligible: Properties located in Arizona, Florida, Michigan, Nevada, and California Tier 2 MSA/MSAD


• Property Type:
• Condominiums
• Maximum 90% LTV/CLTV to $417,000
• Minimum 680 loan representative credit score
• Co-ops
• Maximum 90% LTV/CLTV to $417,000
• Minimum 700 loan representative credit score

Changes to Distressed Markets List – Effective 1/8/10

Effective 1/8/10, CMG MI is pleased to announce that significant MSA/MSADs changes have been made to our Distressed Markets List.

For a complete list of CMG MI’s Tier 1 and Tier 2 Distressed Markets, please click here.

The changes are as follows:

• The following State has been removed from Tier 2 on the state level, but will be subject to both CMG MI’s Tier 1 and Tier 2 Distressed Markets Policies, respectively, based on MSA/MSAD:
• State:
• California – See Distressed Markets List for specific MSAs


• The following State will be subject to CMG MI’s Tier 1 Distressed Markets Policy:
• State:
• Hawaii


• The following MSA/MSADs have been removed from the CMG MI Distressed Markets List:
• MSA/MSADs:
• Boston-Quincy, MA (MSAD)
• Canton-Massillon, OH
• Charlottesville, VA
• Chicago-Naperville-Joliet, IL (MSAD)
• Dalton, GA
• Danville, IL
• Dayton, OH
• Greensboro-High Point, NC
• Janesville, WI
• Lima, OH
• McAllen-Edinburg-MIssion, TX
• Minneapolis-St. Paul-Bloomington, MN-WI
• Salt Lake City, UT
• Sandusky, OH
• Spartanburg, SC
• Sumter, SC
• Toledo, OH


• The following States will remain subject to CMG MI’s Tier 2 Distressed Markets Policy:
• State:
• Arizona
• Florida
• Michigan
• Nevada
• Puerto Rico


• The following MSA/MSADs will be subject to CMG MI's Tier 1 Distressed Markets Policy:
• MSA/MSADs:

Allentown-Bethlehem-Easton, PA-NJ Atlanta-Sandy Springs-Marietta, GA Atlantic City-Hammonton, NJ Baltimore-Towson, MD Bellingham, WA Bethesda-Frederick-Gaithersburg, MD (MSAD) Bremerton-Silverdale, WA Bridgeport-Stamford-Norwalk, CT Camden, NJ Coeur d'Alene, ID Danville, VA Dover, DE Duluth, MN-WI Edison-New Brunswick, NJ Elkhart-Goshen, IN Eugene-Springfield, OR Gainesville, GA Gary, IN (MSAD) Grand Junction, CO Hagerstown-Martinsburg, MD-WV Hickory-Lenoir-Morganton, NC Kingston, NY Kokomo, IN Lake County-Kenosha County, IL-WI (MSAD) Lewiston-Auburn, ME Manchester-Nashua, NH Mansfield, OH Medford, OR Michigan City-La Porte, IN Nassau-Suffolk, NY (MSAD) New Haven-Milford, CT New York-White Plains-Wayne, NY-NJ (MSAD)

Newark-Union, NJ-PA (MSAD) Norwich-New London, CT Oakland-Fremont-Hayward, CA Ocean City, NJ Oxnard-Thousand Oaks-Ventura, CA Peabody, MA (MSAD) Portland-Vancouver-Beaverton, OR-WA Poughkeepsie-Newburgh-Middletown, NY Providence-New Bedford-Fall River, RI-MA Provo-Orem, UT Racine, WI Rockford, IL Salem, OR Salisbury, MD San Diego-Carlsbad-San Marcos, CA San Francisco-San Mateo-Redwood City, CA San Jose-Sunnyvale-Santa Clara, CA Santa Ana-Anaheim-Irvine, CA Santa Barbara-Santa Maria-Goleta, CA South Bend-Mishawaka, IN-MI Springfield, MA Springfield, OH St. George, UT Tacoma, WA (MSAD) Trenton-Ewing, NJ Vineland-Millville-Bridgeton, NJ Virginia Beach-Norfolk-Newport News, VA-NC Washington-Arlington-Alexandria, DC- VA-MD-WV (MSAD) Weirton-Steubenville, WV-OH Wilmington, DE-MD-NJ (MSAD) Worcester, MA Youngstown-Warren-Boardman, OH-PA



• The following MSA/MSADs will be subject to CMG MI’s Tier 2 Distressed Markets Policy:
• MSA/MSADs:
• Bakersfield, CA
• Bend, OR
• Boise City-Nampa, ID
• Chico, CA
• El Centro, CA
• Fresno, CA
• Hanford-Corcoran, CA
• Los Angeles-Long Beach-Glendale, CA
• Madera, CA
• Merced, CA
• Modesto, CA
• Napa, CA
• Redding, CA
• Riverside-San Bernardino-Ontario, CA
• Sacramento--Arden-Arcade--Roseville, CA
• Salinas, CA
• San Luis Obispo-Paso Robles, CA
• Santa Cruz-Watsonville, CA
• Santa Rosa-Petaluma, CA
• Stockton, CA
• Vallejo-Fairfield, CA
• Visalia-Porterville, CA
• Winchester, VA-WV
• Yuba City, CA

Questions? Please contact your CMG MI Account Executive.