A recent swap deal for $100 million of repackaged seasoned adjustable-rate mortgage-backed securities issued by real estate investment trust Thornburg Mortgage Asset Corp. may have presented the first instance ever in which a mortgage pool insurer - PMI Mortgage Insurance Corp. - decided to extend the term of its coverage for old loan pools at the issuer's request, sources say.

According to PMI and Thornburg officials, this unusual policy exception was made in order to accomplish credit enhancement goals and achieve a reduced loss amount on the securitized loans.

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