Subprimes Didn't Have PMI?
Question from a CD reader:
I am hoping you might be able to answer questions for me that have been bothering me since the sub prime lending crisis began last year. Why hasn't private mortgage insurance (PMI) kicked in to protect lenders whose loans have defaulted or are in foreclosure?
Answer: Subprime lenders don’t require private mortgage insurance (PMI), unlike traditional lenders, at least some subprime lenders, according to this website and this one.