Escrow & Title
In Colorado, the 'ALTA' (American Land Title Association) lender's policy of title insurance protects:
AA. The buyer against title defects
BB. The lender against title defects up to the outstanding loan balance✓ Correct
CC. The seller against post-closing claims
DD. Both buyer and lender equally
Explanation
The ALTA Lender's Policy (mortgagee policy) protects the lender against losses up to the outstanding loan balance caused by covered title defects. As the loan is paid down, the policy's coverage decreases.
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