Smith claims he's glad that getting a mortgage loan has gotten easier. Everyone misses a payment occasionally. What lenders are really looking for is your pattern. Missing one payment is understandable. However, when it's a regularly recurring pattern, lenders get nervous.
Ability is how much income people make, how much they can put down.
PMI is an extra bit of protection for the lender. The first is the borrower's credit history. So the lender would review and analyze a person's current credit history and experience. We have to be comfortable that the collateral for the loan, the house itself, is really worth the amount still owed on it. When the real estate market was more volatile, some people would have the value of their home increase even before they moved into it.