Effective April 2, 2010 – CMG MI Distressed Markets Policies and List Changes

Effective 4/2/10, CMG MI announces changes to its Distressed Markets Tier 1 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 #3-10 for more details of 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 Distressed Markets Policy – Tier 1 – Effective 4/2/10

• Debt Ratios:
• Maximum 45%; compensating factors will not be considered

Please review CMG MI’s Distressed Markets Policy for Tier 1 for more details.

Changes to Distressed Markets List – Effective 4/2/10

Effective 4/2/10, CMG MI is pleased to announce that significant MSA/MSADs changes have been made to our Distressed Markets List, as follows:

• The following MSA/MSADs have been removed from the CMG MI Distressed Markets List:
• MSAs/MSADs:
• Bellingham, WA
• Bremerton-Silverdale, WA
• Danville, VA
• Duluth, MN-WI
• Gainesville, GA
• Gary, IN (MSAD)
• Kingston, NY
• Lake County-Kenosha County, IL-WI (MSAD)
• Mansfield, OH
• Racine, WI
• San Francisco-San Mateo-Redwood City, CA
• Springfield, MA
• Springfield, OH
• Tacoma, WA (MSAD)
• Weirton-Steubenville, WV-OH
• Youngstown-Warren-Boardman, OH-PA
• As a result of market condition score improvements, the following MSA/MSADs have been moved from CMG MI Distressed Markets Tier 2 to Tier 1:
• MSAs/MSADs:
• Napa, CA
• San Luis Obispo-Paso Robles, CA
• Santa Cruz-Watsonville, CA
• Santa Rosa-Petaluma, CA
• Yuba City, CA
• The following MSA/MSADs have been updated by the US Office of Management and Budget (OMB) to reflect changes in population estimates:
• MSAs/MSADs:
• Bakersfield-Delano, CA, formerly known as Bakersfield, CA
• Bethesda-Rockville-Frederick, MD (MSAD), formerly known as Bethesda-Frederick- Gaithersburg, MD (MSAD)
• Madera-Chowchilla, CA, formerly known as Madera, CA
• Portland-Vancouver-Hillsboro, OR-WA, formerly known as Portland-Vancouver-Beaverton, OR-WA
• The following MSA/MSADs will be subject to CMG MI’s Distressed Markets Policy - Tier 1 guidelines:
• MSA/MSADs:

Allentown-Bethlehem-Easton, PA-NJ Atlanta-Sandy Springs-Marietta, GA Atlantic City-Hammonton, NJ Baltimore-Towson, MD Bethesda-Rockville-Frederick, MD (MSAD) Bridgeport-Stamford-Norwalk, CT Camden, NJ Coeur d'Alene, ID Dover, DE Edison-New Brunswick, NJ Elkhart-Goshen, IN Eugene-Springfield, OR Grand Junction, CO Hagerstown-Martinsburg, MD-WV Hickory-Lenoir-Morganton, NC Kokomo, IN Lewiston-Auburn, ME Manchester-Nashua, NH Medford, OR Michigan City-La Porte, IN Napa, CA 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-Hillsboro, OR-WA Poughkeepsie-Newburgh-Middletown, NY Providence-New Bedford-Fall River, RI-MA Provo-Orem, UT Rockford, IL Salem, OR Salisbury, MD San Diego-Carlsbad-San Marcos, CA San Jose-Sunnyvale-Santa Clara, CA San Luis Obispo-Paso Robles, CA Santa Ana-Anaheim-Irvine, CA Santa Barbara-Santa Maria-Goleta, CA South Bend-Mishawaka, IN-MI Santa Cruz-Watsonville, CA Santa Rosa-Petaluma, CA St. George, UT Trenton-Ewing, NJ Vineland-Millville-Bridgeton, NJ Virginia Beach-Norfolk-Newport News, VA-NC Washington-Arlington-Alexandria, DC-VA-MD-WV (MSAD) Wilmington, DE-MD-NJ (MSAD) Worcester, MA Yuba City, CA

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

Please review CMG MI’s Distressed Markets List for more details on the 4/2/10 changes.

Questions? Please contact your CMG MI Account Executive.