"ATP*" wrote:

Today's [04 Mar 09] USAToday had a very short reader letter
asking about PMI [Private Mortgage Insurance] and why this was
not protecting the banks, etc. when they were forced into
foreclosure/short-sales. PMI is specifically intended to insure
the lender against exactly the kind of situations we are seeing
in many real estate markets.

I asked one of my professors that question, he said many banks circumvented
the need for PMI with "down payment assistance".


In the old days you saved for a down payment so you, the borrower, had skin in the game.

Wes