CMG MI Program Guideline Changes for All Programs – Effective 2/5/10

Effective February 5, 2010, CMG Mortgage Insurance Company (CMG MI) is making changes to our Conforming & Non-Conforming Program Guidelines and to our Construction-to-Perm Program Guidelines.

Please click here to see our complete Conforming & Non-Conforming Program Guidelines, effective 2/5/10.

Please click here to see the updated guidelines on insuring Construction-to-Perm loans.

Please review Credit Risk Bulletin #2-10 for more details of the 2/5/10 changes.

Please read our Guidelines Comparison for additional information on the 2/5/10 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 CMG MI’s Conforming & Non-Conforming Program Guidelines, Effective 2/5/10

• Automated Approvals
• CMG Mortgage Insurance Company (CMG MI) does not automatically approve loans for mortgage insurance based solely on decisions obtained from Agency systems
• Loans submitted and approved by Fannie Mae’s Desktop Underwriter^®(DU^®) and Freddie Mac’s Loan Prospector^® (LP) must must meet CMG MI’s Construction-To-Permanent Program Guidelines


• Employment History
• Document Efficiencies (DU/LP only)
• One of the following documentation sets will be required (employment gaps explained when required by the findings):
• A verbal Verification of Employment (completed prior to closing); and
• Verification of Employment, or
• One month’s paystubs, which contains at least 30 days of year-to-date earnings, and a verbal Verification of Employment; or
• One paystub and the most recent year’s W-2s and a verbal Verification of Employment, or
• One year’s personal federal tax returns, or
• Two years’ personal federal tax returns, or
• Two years’ personal and two years’ business federal tax returns (if self-employed)
• A Documentation Efficiency of only a Verbal Verification of Employment is not acceptable
• Assets for down payment, closing costs and reserves must meet CMG MI requirements; however, they may be documented using the documentation permitted by DU/LP
• Ineligible: Loan amount > $417,000


• Maximum Interested Party/Seller Contributions & Concessions
• Owner-Occupied
• Maximum of 3% based upon the lesser of the property’s sales price or appraised value on LTVs 90.01 – 95%
• Maximum of 6% based upon the lesser of the property’s sales price or appraised value for LTVs up to 90%
• CMG Single Premium Payment Plan
• Maximum of 6% based upon the lesser of the property’s sales price or appraised value for LTVs up to 95%
• Second Home
• Maximum of 6% based upon the lesser of the property’s sales price or appraised value


• Appraisal
• Ineligible: Streamline appraisal forms and waivers are ineligible, such as those driven by DU/LP (e.g. Exterior-only 2055 drive-by inspections, property inspection waivers and DU Refi Plus property fieldwork waiver), regardless of appraisal efficiencies by DU/LP

Changes to CMG MI’s Construction-to-Perm Program Guidelines – Effective February 5, 2010

The 2/5/10 changes include updates to CMG MI’s Construction-to-Perm Program Guidelines.

Changes to Construction-To-Permanent Program Guidelines

• Automated Approvals
• CMG Mortgage Insurance Company (CMG MI) does not automatically approve loans for mortgage insurance based solely on decisions obtained from Agency systems
• Loans submitted and approved by Fannie Mae’s Desktop Underwriter^®(DU^®) and Freddie Mac’s Loan Prospector^®(LP) must must meet CMG MI’s Construction-To-Permanent Program Guidelines


• Employment History
• Document Efficiencies (DU/LP only)
• One of the following documentation sets will be required (employment gaps explained when required by the findings):
• A verbal Verification of Employment (completed prior to closing); and
• Verification of Employment, or
• One month’s paystubs, which contains at least 30 days of year-to-date earnings, and a verbal Verification of Employment; or
• One paystub and the most recent year’s W-2s and a verbal Verification of Employment, or
• One year’s personal federal tax returns, or
• Two years’ personal federal tax returns, or
• Two years’ personal and two years’ business federal tax returns (if self-employed)
• A Documentation Efficiency of only a Verbal Verification of Employment is not acceptable
• Assets for down payment, closing costs and reserves must meet CMG MI requirements; however, they may be documented using the documentation permitted by DU/LP
• Ineligible: Loan amount > $417,000


• Maximum Interested Party/Seller Contributions & Concessions
• Maximum of 3% based upon the lesser of the property’s sales price or appraised value on:
• LTVs 90.01 - 95% to $417,000
• LTVs up to 90% to $625,500
• Maximum of 6% based upon the lesser of the property’s sales price or appraised value on:
• LTVs up to 90% to $417,000


• Appraisal
• Ineligible: Streamline appraisal forms and waivers are ineligible, such as those driven by DU/LP (e.g. Exterior-only 2055 drive-by inspections, property inspection waivers and DU Refi Plus property fieldwork waiver), regardless of appraisal efficiencies by DU/LP

Please make any necessary changes to your systems and notify your staff and branches as soon as possible.

Questions? Please contact your CMG MI Account Executive.