The insurance is to allow borrowers to get into a home with a low down payment because the risk associated with their default is so high it transfers that risk from the lender to the mortgage insurer. And it allows the lender to give that borrower the lowest interest rate possible for that mortgage without taking in their default risk associated with it. So the borrower gets a much lower-cost mortgage. It's a very affordable way of getting somebody into a home.
On February 7th, 2008. See this statement in context.