[Rick Lee]

Flooding and the AIG bailout have nothing to do with PMI. In fact, even the three years I spent doing A paper mortgages, I never did one that required PMI. Maybe it's common in some parts of the country, but I haven't seen it too much. If you need PMI, you're usually better off just going FHA, which is what just about all my borrowers did who didn't have 20% to put down. Buyers usually make the PMI payments, but the lenders are the ones insured by it. So no buyer is getting the shaft if a PMI company denies a claim. The lender is getting the shaft. But the buyer would have stopped making payments long before it got to that. I haven't heard of that happening. So if you have evidence of it, please share. Otherwise, I suggest you get a clue before posting about something you know nothing about.