To help
guard against the risk of default, some disability income insurance providers offer an optional student loan rider to help young professionals make their loan payments for a fixed number of years (often 10 or 15 years) in the event they should become temporarily disabled.
Section 223 (e) helps to meet the need for adequate housing for moderate and low income families by insuring lenders
against the risk of default on mortgage loans to finance the rehabilitation, purchase, or construction of housing in declining, older, but still viable urban areas where requirements for other mortgage insurance can't be met.
Lenders, after all, want to protect
themselves against the risk of defaults.
Since 1969, HUD has been providing loan insurance on manufactured homes under Title I. HUD's participation has encouraged mortgage lenders to finance manufactured homes by protecting
them against the risk of default, which had traditionally been financed as personal property through short - term, comparatively high - interest consumer installment loans.