[steve86]

That or simply allow mortgage companies to make loans without requiring insurance.

I can see a lender going along with that as long as they can write you a mortgage at 25% or 30% interest.

[longtermmemmory]

or just require a larger deposit

or require a specfic portion of the collateral to be unencumbered.

They do similar loan policies to do loans without income verification.

some reasonale solution will have to develope if there is no insurance avalable at all.