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Originally Posted by sokinwet
Fannie & Freddie are secondary market entities who deal with banks, not consumers. MI is something "banks" require to insure their interest should you default. It is a racket for sure but your anger is misplaced .
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I was under the impression that Fannie and Freddie are involved and therefore responsible. It's their mission to make "the American Dream" a reality by helping people get into homes they can't afford. These people get mortgages that require PMI, which is aquired through companies such as AIG. When people default, the insurance company is required to pay the lender, no?
I've never dealt with PMI, so I could be wrong. I'm just connecting the dots in a long and convoluted mess.