1)Lenders generally require private mortgage insurance (PMI) for conventional loans over 80 percent of the value of the security property. PMI protects a lender against which of the following?

A. Losses due to shortfall in the escrow account.

B.Legal threat to the lender's mortgage claim, i.e. problems with the title.

C.Physical hazards, such as fire and flooding.

D.Changes in the index rate associated with an adjustable rate mortgage

E.Losses due to default on the loan.