This premium protects mortgage lenders in case of borrower default. (swohiorealestate.com)
This is understandable since the property is the means by which the lender will recover the money in case of borrower default. (xelonline.com)
Mortgage Insurance Premiums collected are collected and deposited in an escrow account held by the U.S. Treasury to protect the government in case of a borrower default on the FHA loan. (cahomeloanpro.com)