In Colorado, when a buyer purchases property using an FHA loan, the lender requires:
Why B. A lender's title insurance policy (mortgagee policy) to protect the lender's interest Is Correct
Answer B: B. A lender's title insurance policy (mortgagee policy) to protect the lender's interest
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
Key Escrow & Title Terms in This Question
People Also Study
Related Colorado Questions
- A Colorado lender must provide a Closing Disclosure to the borrower at least how many business days before consummation of a mortgage loan?Finance
- In Colorado, which of the following is typically covered by an owner's title insurance policy?Escrow & Title
- A Colorado buyer's FHA loan requires a Mortgage Insurance Premium (MIP). The upfront MIP is:Finance
- In Colorado, an 'owner's title insurance policy' protects:Escrow & Title
- In the Colorado CBS contract, who is typically responsible for paying for the owner's title insurance policy?Contracts
- In Colorado, which of the following is NOT typically covered by an owner's title insurance policy?Escrow & Title
- A Colorado buyer using an FHA loan must pay which type of mortgage insurance?Finance
- In Colorado, the 'ALTA' (American Land Title Association) lender's policy of title insurance protects:Escrow & Title
Key Terms to Know
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Study This Topic
Practice More Colorado Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →