Because a creditor can bear the loss on a debtor's default,mortgage insurance compensates the debtor for a loss due to a default on a mortgage loan.

Name: Because a creditor can bear the loss on a debtor's default,mortgage insurance compensates the debtor for a loss due to a default on a mortgage loan.
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Mortgage insurance protects the lender, not the debtor, by compensating the lender for losses if the debtor defaults on the mortgage loan.

Because a Creditor Can Bear the Loss on a Debtor's