Lenders Generally Require Private Mortgage Insurance (PMI) for Conventional Loans

Lenders generally require private mortgage insurance (PMI) for conventional loans over 80 percent of the value of the security property. PMI protects a lender against which of the following?

A) Losses due to default on the loan
B) Legal threat to the lender's mortgage claim
C) Stoppage of mortgage payment after the death of the insured borrower
D) Changes in the index rate associated with an adjustable rate mortgage