Origination ActivitiesQuestion 255 of 400
A lender's title insurance policy (loan policy) primarily protects:
a.The lender against loss from covered title defects up to the loan amount
b.The borrower against declining property values
c.The appraiser against valuation errors
d.The seller against buyer default
Explanation
A loan (lender's) title policy protects the lender's lien position against covered defects in title, such as undisclosed liens or ownership claims, up to the loan amount. An owner's policy protects the buyer. It does not insure against market declines or default.
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