CMG MI Program Guideline Changes for All Programs – Effective 4/2/10

Effective April 2, 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 4/2/10.

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

Please review Credit Risk Bulletin #3-10 for more details of the 4/2/10 changes.

Please read our Guidelines Comparison for additional information on the 4/2/10 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

Click here to watch our video on the April 2 changes!

Changes to CMG MI’s Conforming & Non-Conforming Program Guidelines, Effective 4/2/10

• LTV/Loan Amount – Expand minimum loan representative credit score for second homes and loan amounts greater than $417,000
• Loan Amounts up to $417,000
• Second Home
• 90% LTV to $417,000
• Minimum 700 loan representative credit score
• Loan Amounts > $417,000
• Owner-Occupied
• 90% LTV to $625,500
• Minimum 700 loan representative credit score
• CMG Single Premium Payment Plan
• Minimum 680 loan representative credit score
• 90% LTV to $729,750
• Minimum 720 loan representative credit score
• CMG Single Premium Payment Plan
• Minimum 700 loan representative credit score
• 85% LTV to $729,750
• Minimum 700 loan representative credit score
• CMG Single Premium Payment Plan
• Minimum 680 loan representative credit score
• Loan Type – Remove minimum 700 loan representative credit score requirement for Short Term ARMs
• Short Term ARMs (1 to 3 years fixed period)
• Purchase Only
• Owner-Occupied
• Ineligible: Short Term ARMs less than 1 year fixed period, Loan Amounts > $417,000
• Loan Purpose - Expand owner-occupied, cash-out refinance to 90% LTV
• Cash-Out Refinance
• Owner-Occupied
• Maximum 90% LTV to $417,000
• Minimum 740 loan representative credit score
• Maximum $50,000 cash back to borrower at close
• Ineligible: Short Term ARMs less than or equal to 3 years fixed period and Balloons
• Credit History – Address collection accounts or charge-off accounts less than $250 or a total balance of all accounts less than $1,000
• Judgments, liens, collections, voluntary or involuntary repossessions and charge-offs for federal and state tax liens must all be paid in full at the time of loan closing, especially any debt affecting title. However, collection accounts or charged-off accounts do not have to be paid off at or prior to closing if the balance of an individual account is less than $250 or the total balance of all accounts is $1,000 or less
• Ineligible Short Term ARMs Clarification – Throughout the guidelines, where Short Term ARMs are ineligible, the wording has been replaced with the below:
• Short Term ARMs less than or equal to 3 years fixed period

Changes to Construction-To-Permanent Guidelines, Effective 4/2/10

• LTV/Loan Amount – Expand minimum loan representative credit score for second homes and loan amounts greater than $417,000
• 90% LTV to $625,500
• Minimum 700 loan representative credit score
• Loan Type – Remove minimum 700 loan representative credit score requirement for Short Term ARMs
• Short Term ARMs (1 to 3 years fixed period)
• Purchase Only
• Owner-Occupied
• Ineligible: Short Term ARMs less than 1 year fixed period, Loan Amounts > $417,000
• Credit History – Address collection accounts or charge-off accounts less than $250 or a total balance of all accounts less than $1,000
• Judgments, liens, collections, voluntary or involuntary repossessions and charge-offs for federal and state tax liens must all be paid in full at the time of loan closing, especially any debt affecting title. However, collection accounts or charged-off accounts do not have to be paid off at or prior to closing if the balance of an individual account is less than $250 or the total balance of all accounts is $1,000 or less

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.