Finance
What is 'private mortgage insurance' (PMI) and when is it typically required on Oregon conventional loans?
AInsurance that pays the buyer's mortgage if they lose their job; required on all loans
BInsurance protecting the lender against default; required when LTV exceeds 80%✓ Correct
CInsurance protecting the buyer against title defects; required on all new construction
DInsurance that covers property damage; required by lenders in flood zones
Explanation
PMI protects the lender (not the borrower) against loss if the borrower defaults. It is typically required when the LTV ratio exceeds 80% (less than 20% down payment) on conventional loans.
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