Since a pinkie-promise isn't good enough for most lenders, there's MGIC Investment's mortgage insurance to protect lenders when home buyers don't hold up their end of the bargain. MGIC Investment owns Mortgage Guaranty Insurance Corporation, the largest US provider of private mortgage insurance. Such coverage allows otherwise qualified buyers who can't scrape up the standard 20% down payment to get mortgages. MGIC writes both primary insurance on individual loans, and pooled insurance on blocks of mortgages sold on the secondary market. The actual purchasers of its products are the mortgage lenders, including banks, mortgage brokers, and credit unions.
source:www.answers.com
