Finance
The primary purpose of PMI (Private Mortgage Insurance) in Texas is to:
AProtect the borrower against job loss
BProtect the lender against borrower default when the LTV exceeds 80%✓ Correct
CCover property damage not addressed by homeowner's insurance
DGuarantee the interest rate for the life of the loan
Explanation
PMI protects the lender (not the borrower) against financial loss if the borrower defaults and the foreclosure sale proceeds are insufficient to cover the loan balance. It is required when the LTV exceeds 80% on conventional loans.
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