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MINIMUM CREDIT SCORES FOR CHFA LOANS

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        MINIMUM CREDIT SCORES FOR CHFA LOANS

   McCue Mortgage Wholesale Division is temporarily establishing a minimum
   credit score on all CHFA loans. This minimum credit score requirement is a
   McCue Wholesale requirement not a CHFA requirement. We can delineate a
   strong relationship between a credit score below 640 and the delinquency of
   the loans in our 11,000 loan service portfolio. Moreover, a CHFA mortgage is
   more apt to go delinquent if a DAP loan was required for the down payment
   and/or closing costs.

   We all know FHA’s Total Score Card will consistently grant an Approve Eligible
   finding on a loan submission with credit scores below 640, so we are creating
   a credit score overlay requiring that all CHFA loans without DAP have a
   minimum credit score (mid score) of 640.

   All CHFA/DAP loans must have a minimum credit score (mid score) of 660,
   except when the new housing expense does not increase by more than 50%
   over the applicant’s current housing expense. Then we will lower the
   minimum credit score on CHFA/DAPs to 640.

   We are very hopeful that these minimum credit scores will be temporary, and
   we will be able to remove them with the improvement of the economy. Job
   loss is the major reason for default in our portfolio and that will lessen with an
   improving economy.

   The start date for this minimum credit score will be the registration date of
   September 1, 2011 or later. McCue reserves the right to change this policy at
   any time.


                                                                         Wholesale Division
                                                                    A Sales Driven Company
                                                                       Phone: 800.382.0017
                                                                          Fax: 860.223.4553
                                                    One Liberty Square New Britain CT 06050
                                                                                     8/3/11

				
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