Private mortgage insurers have developed a "second look" program that will pay advance claims to facilitate modifications of insured non-GSE loans.

 The program is designed to rescue distressed mortgages that have flunked a net present value test and could be on the road to foreclosure. "As constructed, many NPV models disadvantage loans with mortgage insurance, making it mathematically appear that foreclosure is the best path," according to the Mortgage Insurance Cos. of America.

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