Mortgage insurance (PMI). Borrower pays to cover the lender's loss on default; unlocks low-down-payment loans.
It is a financial instrument.
It exists to relieve Borrower may not repay. That is the whole reason it is here: nothing enters this map without a human problem behind it.
It could not exist without Mortgage and Actuarial science. These are the quiet preconditions — remove any one and the solution stops working.
It competes with Mortgage-backed securities for the same friction.
4 organisations in this map sell it, 3 of them publicly listed.
Its neighbourhood
Everything this entry connects to directly. Click any point to follow it.
The line back to a human being
4 hops from a person at a phase of life. The further a thing sits from the person, the more abstract it looks — and the more it tends to be mistaken for something that came from nowhere.
- SolutionMortgage insurance (PMI)
- FrictionBorrower may not repay
- SolutionMortgage
- FrictionNeed a shared home before you can afford to own one
- Life phaseHousehold formation
- Rooted inScarce resources
- Rooted inShelter
- Rooted inUncertainty
Relieves
Requires
Who sells it
| Organisation | Value | Type | Products |
|---|---|---|---|
| MGIC Investment | $7B | public · MTG | private mortgage insurance |
| Radian Group | $5B | public · RDN | private mortgage insurance, title services |
| Genworth Financial | $3B | public · GNW | long-term care insurance, Enact mortgage insurance |
| Federal Housing Administration | government | FHA loans, HECM reverse mortgages |