A new program from CMG Mortgage Insurance will allow credit unions with delinquent mortgage holders a wider range of options in helping them keep their homes.

The new program is called the Foreclosure Prevention Advance and it would, in effect, allow a credit union to use some money that it might receive from a mortgage insurance claim following a foreclosure to catch delinquent homeowners up on their mortgage payments, prevent the foreclosure and remain in their homes.

“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,” he continued. “The goal is to achieve a sustainable, long-term home retention solution for the credit union and credit union servicer.”

GMG MI spokesman Joel Luebkeman said the credit unions would determine when and how to use the new program and that it was meant primarily to help homeowners their credit unions had determined were making good faith efforts to remain in their homes.

“If it's clear that the homeowners are committed to the home and would be able to make the payments if they caught up, this will help them be able to do that,” Luebkeman said. “But if the homeowners have already left the home, using the program would make less sense,” he added.

A credit union using the program would be making something of an educated wager, Lubkeman acknowledged, because if they deployed the program to help homeowners and then wound up foreclosing anyway, the credit union would receive a mortgage insurance payout minus the amount they had already spent using the program.

But if the credit union deploys the money and the property never forecloses, there would be no loss at all.

Instant Insights /

New CMG Mortgage Program to Allow Credit Unions More Mitigation Flexibility

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