[G Y]

Insurance), ever mentioned in the lender fiasco? Are banks collecting twice? Private Mortgage Insurance (PMI) is insurance that protects your lender against non-payment should you default on your loan. It's important to understand that the primary and only real purpose for mortgage insurance is to protect your lender and not you. As the buyer of this coverage, you're paying the premiums, so that your lender is protected. PMI is often required by lenders due to the higher level of default risk that's associated with low down payment loans. Consequently, it's sole and only benefit to you is a lower down payment mortgage.Kork, I'm not asking how it works or why we need it. I'm questioning why we're not hearing about underwriters for PMI needing a bailout and how much they've paid lenders, among other questions. Thanks for answering.

[kork]

Good question. Just remember when you borrow you are asking someone to trust that you will repay. The lender is exposed to risk. Insurance is usually only required when you put down either a low or no down payment. Otherwise the value of the house is colateral. Beef up your down payment and insuance should not be required.