Finance
In New Mexico, which of the following best describes 'mortgage insurance' as a general concept?
AInsurance that protects the homeowner's property
BInsurance that protects the lender against loss if the borrower defaults on the mortgage loan✓ Correct
CInsurance that guarantees the mortgage interest rate
DInsurance required for all real estate transactions
Explanation
Mortgage insurance (FHA MIP, VA funding fee, or private PMI) protects the lender against financial loss if the borrower defaults and the property sale doesn't cover the outstanding loan balance.
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