CMG MI Program Guideline Changes for All Programs – Effective 6/7/10

Effective June 7, 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.

Click here to see approval dates by individual state departments of insurance.

Please click here to see our complete Conforming & Non-Conforming Program Guidelines, effective 6/7/10.

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

Please click here to see the new guidelines for CMG MI’s CU 3/2 Advantage Product.

Please review Credit Risk Bulletin #5-10 for more details of the 6/7/10 changes.

Please read our Guidelines Comparison for additional information on the 6/7/10 changes.

Review our Monthly and Single Premium rates, effective 6/7/10.

Review our Monthly and Single Premium rates for CU 3/2 Advantage, effective 6/7/10.

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

Also effective 6/7/10, CMG MI is making significant changes to our Distressed Markets Policy and List. Please visit www.cmgmi.com/distressed_markets for details.

Click here to watch our video on the June 7 changes!

Changes to CMG MI’s Conforming & Non-Conforming Program Guidelines, Effective 6/7/10

• Territorial Underwriting Guidelines – Until the Departments of Insurance (DOIs) in the states approve the rate filing for the rates effective 6/7/10, there is a minimum 680 loan representative credit score requirement
• Until the Departments of Insurance (DOIs) approve the rate filing for the rates effective 6/7/10, there is a minimum loan representative credit score requirement in addition to the nationwide underwriting requirements
• Minimum 680 loan representative credit score
• The territorial minimum loan representative credit score requirement will no longer apply after the respective state’s DOIs have approved the rate filing. Please visit www.cmgmi.com/rates for updated rate sheets and rate filing state status
• LTV/Loan Amount – Lower minimum loan representative credit score to 660
• Loan Amounts up to $417,000
• Owner-Occupied
• 95% LTV to $417,000
• Minimum 680 loan representative credit score
• All other guidelines apply
• 95% LTV to $417,000
• Minimum 660 loan representative credit score
• Purchase & Rate/Term Refinance
• 1-unit single-family detached and attached
• Maximum 41% debt ratio, regardless of DU or LP recommendations
• Eligible Properties – Condominiums and co-ops eligible as second homes
• Second Home
• 1-unit single-family detached and attached
• Condominiums must be Fannie Mae/Freddie Mac warrantable
• Co-ops subject to the CMG MI Cooperative Housing Master Policy filed with state DOIs
• Ineligible: 2-4 units, manufactured homes, condotels, timeshare/interval ownership, mixed use, builder inventory and spec homes, and third party originations

Changes to CMG MI's Construction-to-Permanent Guidelines, Effective 6/7/10

• Introduction – Remove Note reference to limited documentation
• The CMG MI Construction-To-Permanent Program is designed to insure loans to borrowers with a minimum loan representative credit score of 680
• If certificate of occupancy has been issued, loan is not eligible for the Construction-To-Permanent Program
• Overview: CMG MI Mortgage Insurance – Clarification regarding ineligibility for MI if there is a 30 day delinquency on the construction loan during the construction phase
• Mortgage insurance coverage on the permanent loan is ineligible if the borrower has any 30 day delinquencies on the construction loan during the construction phase
• LTV/Loan Amount – Increase maximum loan amount for 90% LTV to $729,750
• Loan Amounts up to $417,000
• Owner-Occupied
• 95% LTV to $417,000
• Minimum 680 loan representative credit score
• Loan Amounts > $417,000
• Owner-Occupied
• 90% LTV to $625,500
• Minimum 700 loan representative credit score
• 90% LTV to $729,750
• Minimum 720 loan representative credit score

CMG MI’s New CU 3/2 Advantage Guidelines

Please review the guidelines for this mortgage insurance product to determine eligibility. Please be aware that Distressed Markets Policy will apply.

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.