Distressed Markets 11109 Landing Page

RE: PMI Quarterly Distressed Markets Policy Update and DTI Change

As a result of our continued monitoring of conditions in the mortgage market, PMI will make the following additions/changes to the PMI Distressed Markets List effective November 1, 2009: Four MSAs have been removed from the PMI Distressed Markets List: ƒ ƒ ƒ ƒ

Memphis, TN-MS-AR Canton-Massillon, OH Elmira, NY Charleston-North Charleston-Summerville, SC

The following states have been added to the PMI Distressed Markets List: ƒ ƒ

Maryland Michigan

The following MSA/MSADs have been added to the PMI Distressed Markets List: • • • • • • • • • • • • • • •

Decatur, AL Gadsden, AL Mobile, AL Tuscaloosa, AL Grand Junction, CO Greeley, CO Lewiston, ID-WA Fort Wayne, IN Michigan City-La Porte, IN Cumberland, MD-WV Missoula, MT Burlington, NC Rocky Mount, NC Albuquerque, NM Lima, OH

• • • • • • • • • • • • • •

Sandusky, OH Springfield, OH Youngstown-Warren-Boardman, OH-PA Spartanburg, SC Kingsport-Bristol-Bristol, TN-VA Ogden-Clearfield, UT Provo-Orem, UT Salt Lake City, UT Blacksburg-Christiansburg-Radford, VA Charlottesville, VA Roanoke, VA Mount Vernon-Anacortes, WA Wenatchee-East Wenatchee, WA Racine, WI

Debt-to-Income (DTI) Ratio Change Effective September 21, 2009 Additionally, in an effort to provide flexibility, PMI will be increasing the maximum debt-to-income (DTI) ratios to 45% for all loans. While this will allow more borrowers to qualify, we caution our customers to carefully analyze the borrower’s ability to repay the loan using a higher ratio. We will require that your submissions represent a balanced range of DTI ratios. For complete information, please review the Guidelines at a Glance and the PMI Distressed Markets List, which have been updated. We are committed to achieving affordable, responsible and sustainable homeownership in all the communities we serve, and we appreciate the opportunity to work with you to achieve this goal.

9.18.09