Mortgage Insurance Protects Lenders When a Borrower Defaults by Making

Mortgage insurance protects lenders when a borrower defaults by making up any shortfall needed to repay the loan if the sale of the property doesn't cover the debt. Federally regulated lenders must have mortgage insurance on loans where the buyer's down payment is less than 20 per cent of the price. This can partially prevent

A) symmetric information problems.
B) adverse selection problems.
C) public information problems.
D) the lemon problem.