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American_Bankers_Association

CTFA · Question #202

An insurance policy that protects the mortgage lender from loss in the event the borrower defaults on the loan; typically required by lenders when the down payment is less than 20%.

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Question

An insurance policy that protects the mortgage lender from loss in the event the borrower defaults on the loan; typically required by lenders when the down payment is less than 20%.

Options

  • APrivate mortgage insurance
  • BPublic mortgage insurance
  • CDown payment
  • DLoan to value ratio

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