Finance
What is the purpose of mortgage insurance (PMI) required by many Kansas lenders?
ATo protect the borrower from foreclosure
BTo protect the lender if the borrower defaults✓ Correct
CTo pay property taxes in default
DTo guarantee the interest rate
Explanation
Private mortgage insurance (PMI) protects the lender, not the borrower, in the event of default. It is typically required when the LTV ratio exceeds 80%.
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