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Sander Scott explains private mortgage insurance and how it protects investors in mortgage-backed securities. Investors rely on homeowner equity as a hedge against losses when borrowers default.
Sander Scott explains private mortgage insurance and how it protects investors in mortgage-backed securities. Investors rely on homeowner equity as a hedge against losses when borrowers default.
What is private mortgage insurance and who's paying for it? Great question. So when investors buy mortgage-backed securities, they're buying them with the confidence that they have the hedge. The hedge is equity.
