Escrow & Title
A lender's title insurance policy protects:
AThe buyer against all future defects
BThe lender against title defects up to the outstanding loan balance✓ Correct
CBoth the buyer and lender equally
DThe seller after closing
Explanation
A lender's (mortgagee's) title insurance policy protects the lender's security interest up to the outstanding loan amount. It does not protect the buyer; a separate owner's policy is needed for that.
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