Standard&Poor's Ratings Services' insurer financial strength rating on CMG Mortgage Insurance Co. (CMG MI) is based on its leadership position within its niche credit-union market, the strong credit quality of credit-union customers, and a conservative underwriting philosophy. The difficult macroeconomic environment, which caused CMG MI to report weak operating results in 2009 and 2010 and continues to impair its 2011 results, offsets the strengths. CMG MI also faces sustained competition as peers increasingly pursue customers in the credit-union market. Moreover, CMG MI is highly dependent on its parents (PMI Mortgage Insurance Co. [PMI; R/--/--] and CUNA Mutual Insurance Society [CUNA Mutual; not rated]) for operational support. Recent financial difficulties at one of the parents may hinder the level
