HAMP "Second Look"
MICA's "Second Look" Template
Non-GSE loans with MGIC mortgage insurance that pass the Waterfall process, but fail the NPV test, must either be modified or submitted to MGIC for the MICA/US Treasury "Second Look" process. Servicers using the US Treasury NPV model should submit these loans using the template below.
MICA Second Look Instructions & Template
Servicers NOT using the US Treasury NPV model, but using their own, should submit the following for review:
Other NPV Model Information Required:
- Electronic copy of the NPV model spreadsheet with all formulas and data plus "Second Look" data elements
- Electronic copy of the NPV inputs and outputs
- All available information contained in the complete workout package, including all supporting documentation
"Second Look" Additional Data Elements:
- Servicing Company Name
- Investor
- Primary MGIC Certificate Number
- Borrower First Name
- Borrower Last Name
- Property State
- Property ZIP
- Total Dollar Amount Delinquent
- Total Capitalized Dollar Amount
- Gross Unpaid Principal Balance after Modification
- Fannie Mae's MGIC Company Code — Primary: 06
“Second Look” High Level Overview
- MGIC will determine why the NPV test is negative, and how much MGIC financial assistance is required to cause a positive NPV result. MGIC's Model Process
- MGIC determines if a financial contribution in the form of an advance claim payment is appropriate to make the modification possible for the borrower. If so, MGIC will notify the servicer of the decision and amount of the advance claim payment. This amount effectively lowers the NPV cost to modify and the loan now passes the NPV test.
- MGIC facilitates other alternatives to foreclosure when modification is not viable at this time, such as:
- Short Sale: Work with Borrower and Servicer to sell property at a market value less than the amount owed
- Deed in Lieu: In certain circumstances, the borrower may avoid foreclosure by conveying title to the property in full satisfaction of the debt
