Finance
What is the purpose of title insurance from a lender's perspective?
ATo protect the borrower against future market value declines
BTo protect the lender's security interest against title defects that could affect the validity of the mortgage✓ Correct
CTo guarantee that the borrower will repay the loan
DTo replace the need for a property survey
Explanation
A lender's title insurance policy protects the lender's security interest (the mortgage lien) against claims arising from title defects that pre-date the mortgage.
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