Finance
Mortgage insurance (PMI) primarily protects:
AThe borrower in case of death or disability
BThe lender in case the borrower defaults✓ Correct
CThe property against physical damage
DThe title company against fraudulent claims
Explanation
Private Mortgage Insurance (PMI) protects the lender — not the borrower — against financial loss if the borrower defaults on the loan. It is required when the borrower's down payment is less than 20%.
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