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 PHILADELPHIA, Sept. 7 /PRNewswire/ -- CMAC's new Monthly Premium Plan designed to reduce the amount of cash borrowers need at closing, is available immediately in all states, the company announced today.
 CMAC's Monthly Premium Plan became effective Sept. 1, 1993, and some loan applications already have been processed using the monthly plan.
 "We want to respond to our customers' immediate needs," company President James C. Miller said. "So, we decided to implement the Monthly Premium Plan without delay. This will make housing more affordable in all states."
 New Monthly Premium Plan rates have been filed in all states where filing is required and are being used in many states already. In states where insurance department approval is pending, CMAC is using its "Simplified" rates divided into 12 monthly payments. These "Simplified" rates are already lower than the first premium on other rate plans, and dividing them by 12 makes them very economical.
 Monthly premiums are available on all property types, loan-to-value categories and coverages that CMAC offers, but the program is especially beneficial for first-time home buyers who want to take advantage of favorable interest rates, but are having difficulty coming up with cash for closing.
 The new program is available to all lenders, regardless of whether they use paper or tape renewal billing. Servicers can use the standard tape format or a proposed expanded tape format. These options allow lenders greater flexibility with regard to secondary marketing transactions.
 To make using this new program simple, CMAC's processing and billing cycles remain the same for the Monthly Premium Plan. The program also allows lenders to remit multiple months' premiums in the initial payment, if they choose.
 "We want to help our customers succeed in today's fast-changing business environment," Miller said. "To do that, we have to move quickly. That's why we at CMAC are bringing our customers the kind of product they want, exactly when and where they need it."
 CMAC is the operating subsidiary of CMAC Investment Corporation (NYSE: CMT). The company provides private mortgage insurance and risk management services to mortgage lending institutions through offices in key cities nationwide. Private mortgage insurance protects lenders from default-related losses on residential first mortgage loans made to home buyers who make down payments of less than 20 percent of a home's purchase price, and facilitates the sale of mortgage loans in the secondary mortgage market.
 -0- 9/7/93
 /CONTACT: Debbie Pinnock of CMAC, 215-564-6600, ext. 3452/

CO: CMAC Investment Corporation ST: Pennsylvania IN: FIN SU:

CC-MK -- PH012 -- 9452 09/07/93 16:01 EDT
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Publication:PR Newswire
Date:Sep 7, 1993

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