Effective May 7, 2010 – CMG MI Relaxes Distressed Markets Policies for Tiers 1 and 2

Effective 5/7/10, CMG MI announces changes to its Distressed Markets Policies for Tiers 1 and 2.

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 Policies, please visit the CMG MI ZipMap at http://www.cmgmi.com/map.

Please review Credit Risk Bulletin #4-10 for more details of the 5/7/10 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 May 7 changes!

Changes to Distressed Markets Policy – Tier 1 – Effective 5/7/10

• LTV/Loan Amount – Increase maximum loan amounts for 85% LTV and 90% LTV guidelines
• Loan Amounts > $417,000< li>
  • Maximum 90% LTV/CLTV to $625,500
  • Minimum 720 loan representative credit score
  • Maximum 85% LTV/CLTV to $729,750
  • Minimum 720 loan representative credit score
  • CMG Single Premium Payment Plan
  • Minimum 700 loan representative credit score

Changes to Distressed Markets Policy – Tier 2 – Effective 5/7/10

• LTV/Loan Amount – Lower minimum loan representative credit score requirement for properties located in Arizona, Florida, Michigan, Nevada, and California Tier 2 MSA/MSADs
• Loan Amounts up to $417,000
• Maximum 90% LTV/CLTV to $417,000
• Properties located in Arizona, Florida, Michigan, and Nevada
• Minimum 700 loan representative credit score, regardless of property type
• Properties located in California Tier 2 MSA/MSAD
• Minimum 700 loan representative credit score, regardless of property type
• Properties located in all other states
• Minimum 680 loan representative credit score

Please review CMG MI's Tier 1 and Tier 2 Distressed Markets Policies for more details on the 5/7/10 changes.

Questions? Please contact your CMG MI Account Executive.