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.
Status: State insurance regulators are actively studying what changes are deemed necessary to the solvency regulation of mortgage guaranty insurers. The NAIC's Mortgage Guaranty Insurance (E) Working Group was formed by the Financial Condition (E) Committee in late 2012. This Working Group is drafting changes to the Mortgage Guaranty Insurers Model Act (#630) and other areas of solvency regulation of mortgage guaranty insurers. In February 2013, the Working Group released a list of potential regulatory changes in which it identified the issues with mortgage guaranty insurance as it exists now. The primary problems are threefold: