Finance
What is the purpose of 'private mortgage insurance' (PMI) in South Carolina?
ATo insure the borrower's life and pay off the mortgage upon death
BTo protect the lender if the borrower defaults on a high-LTV loan✓ Correct
CTo insure the property against physical damage
DTo protect the buyer's earnest money deposit
Explanation
PMI protects the lender (not the borrower) against losses from default on loans where the LTV exceeds 80%. The borrower pays the premium but receives no direct protection from PMI.
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