The insurer financial strength rating on CMG Mortgage Insurance Co. (CMG MI) is based on its leadership position within its market niche, its effective use of operational support from its parents, and the strong credit quality of credit union customers. In 2008, CMG MI's historically strong operating performance began to weaken. Conditions in the credit union segment of the mortgage insurance industry have not bottomed, and competition is heating up. As Standard&Poor's Ratings Services has noted in previous reports on this company, inherent weaknesses include CMG MI's dependence on its parents for operational support and its narrow focus. In May 2009 and July 2009, Standard&Poor's lowered the rating on CMG MI to 'A' from 'AA-' and
