Finance
In Washington, a buyer who makes a down payment of less than 20% on a conventional loan is typically required to pay PMI, which protects:
AThe buyer from foreclosure
BThe lender against loss if the borrower defaults✓ Correct
CThe title insurance company
DThe seller's equity
Explanation
PMI (Private Mortgage Insurance) is insurance that protects the lender (not the borrower) against loss if the borrower defaults. When the LTV is above 80%, the lender faces higher risk, and PMI compensates the lender for potential losses.
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