To help troubled homeowners avoid foreclosure
The Mortgage Insurance Companies of America (MICA) has launched a new program to help troubled homeowners avoid foreclosure.
MICA’s members are launching a ‘Second Look’ Program by working closely with the Housing Policy Council, loan servicers and the US Treasury. The program aims to give borrowers an additional underwriting review if they have been turned down for a loan modification of a non-GSE mortgage.
The new program is intended to be used on any non-GSE loan modification where a so-called ‘net present value’ (NPV) test is used to determine eligibility. These could include jumbo mortgages, loans on investors’ balance sheets and loans that were packaged into private-label mortgage securities. The new program gives mortgage insurers an opportunity to help troubled borrowers remain in their homes, said the company.
A servicer is permitted to submit a loan for the Second Look Program immediately after an initial determination of a failed NPV test, or after considering other modification programs allowed by the investor. The mortgage insurer will review the Second Look request to determine if a claim advance payment is appropriate.