Finance
A lender's title insurance protects the lender only up to:
AThe original purchase price of the property
BThe outstanding loan balance at the time a claim is made✓ Correct
CThe appraised value at the time of closing
DThe total of all payments made on the loan
Explanation
A lender's title insurance policy (mortgagee's policy) protects the lender only up to the outstanding loan balance at the time a covered title claim arises. As the loan is paid down, the policy's protection decreases accordingly.
Related Arkansas Finance Questions
- Under the Equal Credit Opportunity Act (ECOA), a lender may NOT deny credit based on:
- A 'jumbo loan' is one that:
- What is a negative amortization loan?
- Amortization of a mortgage loan means:
- A construction loan is a type of:
- A prepayment penalty on a mortgage charges the borrower for:
- Arkansas is a 'lien theory' state. This means that when a borrower takes out a mortgage:
- A buyer's front-end (housing) debt-to-income ratio is calculated by dividing:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →