SAN FRANCISCO (5/9/12)--CMG Mortgage Insurance Co. (CMG MI) has introduced a new option under its CU Homekeepers program that credit unions can use to prevent foreclosures and keep members in their homes.
With Foreclosure Prevention Advance (FPA), CMG MI will advance funds for servicers' approved initiatives designed to cure delinquencies on CMG MI-insured loans. Servicers are required to submit for review and approval a package of documentation supporting each FPA request.
"CMG MI strongly supports credit unions and credit union servicers trying to prevent foreclosures, and we are initiating the FPA option to provide direct, targeted assistance," said Scott Romesburg, senior director of underwriting, operations and technology at CMG MI. "Many members just need these additional funds to cure the delinquent loan balance.
"No repayment of the advance is expected from the member," Romesburg added. "The goal is to achieve a sustainable, long-term home retention solution for the credit union and credit union servicer."
The program's guidelines require members participating to have stable incomes and demonstrate a commitment to keeping their homes.
Decisions are made within two business days, and funds are forwarded to servicers within 10 business days of formal approval.