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Why did I get a letter from CMG Mortgage Insurance Company (CMG MI) regarding “adverse action”?

April 26, 2017adverse action cmg COMPANY letter mi mortgage insurance

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Why did I get a letter from CMG Mortgage Insurance Company (CMG MI) regarding “adverse action”?

1 Answer

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10 Posted

You recently applied for a mortgage loan and your Credit Union has applied to CMG MI for mortgage guaranty insurance (MI) on that loan. CMG MI has agreed to provide your Credit Union with MI. In this process, your credit report information was used to determine that the MI rate on your loan will be higher than our lowest rate available for the applicable insurance program. The federal Fair Credit Reporting Act (“FCRA”) requires that an “adverse action notice” be sent to a consumer when a company offering certain types of insurance or terms of credit uses a consumer’s credit report information to set an insurance rate or credit terms higher than their lowest available rate.