Private mortgage insurance was created to help less wealthy people buy homes by reducing the risk to mortgage lenders if the borrower defaults. But while the policies have helped hundreds of thousands obtain a mortgage nationwide, they also created a class of home owners who were especially vulnerable when the economy crashed in 2008. The New England Center for Investigative Reporting has found that more than 200 Massachusetts home owners and thousands more across the United States have been pursued by mortgage insurers for losses ranging from tens of thousands of dollars to more than $200,000 since the foreclosure crisis began. And consumer have scant control over whether their insurance company will demand money from them after a foreclosure. Watch the video above to find out more out about private mortgage insurance and how it can end up suing you.
