The 80/20 loan is an end run on PMI. The PMI drops out of a 80/20 no money down loan. Plus if your house has appreciated to an 80% LTV, you can drop the PMI. In essence, the 20% second is the looser on the default.
The “Second Trust Deed” is going to have the same ring as “Peruvian Bonds” in the near future.
