Most of the "non conforming / subprime" mortgages got around the PMI and MIP by putting to gether various packages such as a 80% loan that did not require PMI then a 20% mortgage as a second mortgage to be paid off in 5 years.(which usually never got paid either).
There are all kinds of programs that the lenders put together that did not exhibit good financial stability now they are loosing billiions of $$$$ per month in UN-INSURED mortgages.
Wachovia lost $1.1 BILLION in Oct and $1.3 Billion in Sept .
Citi corp will report between 9 and 11 billlion $ lost this quarter ---acccording to bham news last sat.