Effective June 7, 2010 – CMG MI Eliminates the Tier 1 Distressed Markets Policy

Effective 6/7/10, CMG MI is pleased to announce the elimination of the Tier 1 Distressed Markets Policy as a result of improving housing markets. Distressed Markets in Tier 1 are now eligible for coverage under CMG MI’s Conforming & Non-Conforming guidelines.

Also effective 6/7/10, all Tier 2 Distressed Markets remain as simply Distressed Markets that are eligible for coverage under the sole Distressed Markets Policy that goes into effect June 7. This Policy covers those MSAs/MSADs that 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 the CMG MI Distressed Markets Policy, please visit the CMG MI ZipMap at http://www.cmgmi.com/map.

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

Changes to Distressed Markets Policy – Effective 6/7/10

• LTV/Loan Amount – For LTVs with loan amounts up to $417,000, lower minimum loan representative credit score requirement to 680. For loan amounts greater than $417,000, allow LTVs up to 90% LTV, including properties located in Arizona, Florida, Michigan, Nevada, and California MSA/MSADs
• Loan Amounts up to $417,000
• Maximum 90% LTV/CLTV to $417,000
• Minimum 680 loan representative credit score
• Loan Amounts > $417,000
• Maximum 90% LTV/CLTV to $625,500
• Properties located in Arizona, Florida, Michigan, Nevada, and California MSA/MSADs
• Minimum 760 loan representative credit score
• Properties located in all other MSA/MSADs
• Minimum 740 loan representative credit score

Please review CMG MI's Distressed Markets Policy and List for more details on the 6/7/10 changes.

Questions? Please contact your CMG MI Account Executive.