Finance
In Colorado, 'mortgage insurance' for FHA loans and 'PMI' for conventional loans both serve the same basic purpose of:
AA. Protecting the borrower against unemployment
BB. Protecting the lender against default-related losses when the borrower has less than 20% equity✓ Correct
CC. Insuring the property against physical damage
DD. Guaranteeing the borrower's title
Explanation
Both FHA MIP (Mortgage Insurance Premium) and conventional PMI (Private Mortgage Insurance) serve the same fundamental purpose: protecting the lender against default losses on higher LTV loans. The borrower pays the premium, but the lender is the beneficiary.
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