Does PMI pay off the loan when the borrower dies and does the property return to the surviving family?

Private Mortgage Insurance (PMI) does not pay off the loan when a borrower dies. Instead, the outstanding mortgage balance typically becomes the responsibility of the borrower's estate or surviving family members. If the mortgage is not paid off, the lender can initiate foreclosure proceedings. However, the property generally remains with the family unless they are unable to continue making payments or refinance the loan.