Confusing cause and effect is one of the most common logical fallacies. It's a principal component of most propaganda. It's also known as the correlation/causation error, Post Hoc Ergo Propter Hoc or the false cause fallacy.
Loss Mitigation. Loss mitigation is a process used by mortgage lenders to work with buyers who are delinquent on their home loans. Through the loss mitigation process, a lender may modify the terms of a home loan, allowing the homeowner to sell the property for less than is owed, or transfer the deed back to the lender. The goals of loss mitigation are to reduce the potential loss being incurred by a lender when the borrower is delinquent.
The loss settlement formula works like this: If a homeowner with a $400,000 house carries only $300,000 of coverage, and sustains a loss of $150,000 from a fire, then less than the total amount of $150,000 will be reimbursed.