Who profits from private mortgage insurance real estate?

PMI protects the lender in the case of a loan default. The borrower is paying for the insurance coverage on behalf of the lender.

While this policy is for the lender’s advantage, it also benefits the borrower in that the lender may not have been ready to make such a hazardous low down payment loan if they didn’t have an insurance policy to cover themselves in the event of failure.

Before title insurance, how did purchasers insure real estate titles?

Buyers would retain the services of a lawyer to “review the title.” The lawyer would investigate the chain of title as it was recorded at the county courthouse and then prepare an opinion letter outlining any possible title difficulties. If the lawyer makes a mistake, he or she might be held accountable for malpractice.