Home loans with low down payments require PMI insurance, so why are banks losing money on sub-prime mortgages?
Friday, May 9th, 2008cmsb705 asked:
A home loan with less than 20% down requires PMI (Private Mortgage Insurance). Since most “sub-prime” mortgages would require PMI, why are banks losing so much money on these loans? Shouldn’t it be the insurance companies that lose the money?
Question posted courtesy of: Gladys
A home loan with less than 20% down requires PMI (Private Mortgage Insurance). Since most “sub-prime” mortgages would require PMI, why are banks losing so much money on these loans? Shouldn’t it be the insurance companies that lose the money?
Question posted courtesy of: Gladys
