Private mortgage insurance
Private mortgage insurance (PMI) protects the lender against a loss if a borrower defaults on the loan.

 KB Home Faces Loss in Second Quarter
One of the nation's largest home builders, KB Home, reported that it went into a loss in the fiscal second quarter as it booked charges for land and inventory write-downs. According to KB Home reports, the net loss for the quarter ended May 31 came to $148.7 million, or $1.93 a share. They had a profit of $205.4 million, or $2.45 a share, a year ago.