So would all these mortgage lenders be in a fix if they required borrowers to pay for Private Mortgage Ins?

I thought that was the whole idea of PMI, to protect the lender.So would all these mortgage lenders be in a fix if they required borrowers to pay for Private Mortgage Ins?
Pmi is only required if the loan is over 80% LTV. The PMI companies pay anything over the 80% back to lender if the loan goes into default. So the lenders only get part of their money back. At the most 20% more likely 10%. Plus, the PMI companies are failing now and cant even pay back the lenders. So would all these mortgage lenders be in a fix if they required borrowers to pay for Private Mortgage Ins?
What we have learned is that the PMI companies had inflated values and would not have been able to save the day. They are carrying properties on their ';books'; as worth $500,000 when those properties could not be sold for $100,000. More scams and questionable accounting.


The lenders would be in a fix with PMI..
Mortgage insurance works only if the counterparty is solvent. In a lot of cases, the counterparty wound up being AIG, which was buried under the weight of the insurance and other claims.