Origination ActivitiesQuestion 264 of 400
A settlement agent prepares to record the deed and mortgage after funding. Recording these documents primarily serves to:
a.Set the borrower's interest rate
b.Give public notice of the ownership transfer and the lender's lien
c.Waive the borrower's right of rescission
d.Cancel the title insurance policy
Explanation
Recording the deed and mortgage/deed of trust in the public land records gives constructive notice of the change in ownership and the lender's lien position, protecting priority. Recording does not set rates, waive rescission, or cancel title insurance.
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