For more information:
Marisa Rawling 415/284-2519 marisa.rawling@cmgmi.com
Phil Tschudy 608/231-7188 philip.tschudy@cunamutual.com

Sept. 19, 2007

SAN FRANCISCO – CMG Mortgage Insurance Company (CMG MI) has become the first U.S. mortgage insurance (MI) provider to insure portable mortgage loans through its new GO mortgage insurance program.

Mortgage loans featuring a portable option are relatively new in the U.S. market, although they are common in the United Kingdom, Australia and Canada.  They allow members with secured mortgage loans to transfer key terms of the loan – like the interest rate – to a new residence, rather than have to apply for a new one at market rates. 

CMG MI has launched the GO Program to provide MI for high loan-to-value mortgage loans that carry the portability option.  Under the GO Program’s guidelines, at the same time that members transfer the key terms of their original loan to a new property, the ported loan may be eligible for mortgage insurance coverage by CMG MI. 

Only purchase loans are eligible for the GO Program coverage.  There is no restriction on loan type, as the portability option can be added to any type of mortgage loan the credit union chooses (fixed, adjustable-rate, balloon, etc.).

Working with CMG MI, CUNA Mutual Group’s LOANLINER® Documents has developed for portable mortgages an informational disclosure and addendum for the note.  “A key obstacle for credit unions interested in portable mortgages has been the lack of disclosures and documents that meet compliance and operational requirements,” said Bill Klewin, Director of LOANLINER Product. 

“We’ve developed an addendum and informational disclosure that cover all states and will be available by request, so credit unions are able to offer this product to members.  Portable mortgage documents are a natural extension to our recently-announced new First Mortgage product line within LOANLINER,” Klewin said.

Portable mortgages are a great way to build and strengthen a lifetime relationship with your members, according to Brian Shepherd, Senior Vice President and General Manager of CMG MI.  “Americans typically relocate three or more times during their lifetimes, to accommodate careers, marriages, educational opportunities and other significant life changes.  No one wants to be penalized with a higher interest rate on their mortgage every time they move.”

First mortgage loans turn over in less than 10 years on average.  Credit unions continually face the risk that a member will move and discontinue the relationship as a result of seeking a new mortgage loan for their new property.  Portable mortgages allow the member to stay with the credit union that originated their initial home loan and not be lured away by a competitor.

“Our GO mortgage insurance program is designed to support credit unions that want to retain members by offering portable mortgages,” Shepherd said.

CMG Mortgage Insurance Company
Licensed in all states, CMG Mortgage Insurance Company (CMG MI) operates as a joint venture between CUNA Mutual Investment Corporation and PMI Mortgage Insurance Co.  The company provides private mortgage guaranty insurance to protect credit unions against potential losses in the event of borrower default.  By covering default risk on residential first mortgage loans, CMG MI facilitates the sale of low-down-payment mortgages in the secondary mortgage market and expands homeownership opportunities by enabling credit union members to buy a home with a down payment of less than 20 percent.  For more information, visit www.cmgmi.com or call (800) 909-4264.
 
CUNA Mutual Group
CUNA Mutual Group is the leading provider of financial products and services to credit unions and their members worldwide.  More information on the company is available on the company’s Web site at www.cunamutual.com.

LOANLINER is the most trusted brand in the credit union marketplace for compliant, easy-to-use lending and deposit document systems, enabling credit unions to process loan and member transactions quickly and easily with the assurance that they are in compliance with regulations.  For more information, contact LOANLINER at (800) 356-5012 or learn more by visiting www.loanliner.com.