The phrase "to bear the loss" means to accept or endure the negative consequences or damage that results from losing something valuable or important. Full definition
This is similar to a traditional annuity in which the insurance company bears the loss of continuing annuity payments in the event that you live past your life expectancy. (ufcu.pfyfn.com)
That means that they don't bear the loss if the loan goes to foreclosure. (businessinsider.com)
So, they don't bear the loss if the loan goes to foreclosure. (propublica.org)