From: one-if-by-land@concord.com   
      
   Sitting here churning out a set of construction drawings and my mind wanders   
   as its want to do and I thought about all these home mortgages in default   
   across the fruited plain.   
   By extension I wondered why the lenders were in dire straits if PMI (private   
   mortgage insurance) was there as a buffer.   
   I pulled my real estate books and perused but could not find a reference   
   that PMI was required by law.   
   (I'm aware of the 20% / 1 yr rule)   
   So I emailed a real broker friend and asked him if PMI is required by law.   
   He told me PMI is not required by law and is applied at the lenders   
   discretion.   
   Further, subprime loans rarely require PMI.   
   Say what???   
   The loans MOST likely to default do not have the safeguard of PMI.   
   This is like a cruise ship with a bunch of holes in the bottom setting to   
   sea with no lifeboats.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)