Finance
Private mortgage insurance (PMI) protects:
AThe borrower in case of job loss
BThe lender against borrower default on high-LTV conventional loans✓ Correct
CThe property against physical damage
DThe borrower against title defects
Explanation
PMI protects the lender (not the borrower) against loss if the borrower defaults on a conventional loan with less than 20% down. The borrower pays the PMI premium as a condition of the high-LTV loan.
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