FinanceIntermediateDelaware Exam

What is a 'lender's title policy' endorsement in Delaware?

ASimply a routine endorsement the lender places directly on the borrower's own title insurance policy, though this can vary by county
BAn additional coverage provision added to a standard title insurance policy to cover specific risks not included in the base policyCorrect
CA government endorsement of a private lender's practices
DAn endorsement requiring the property to meet FHA standards

Why An additional coverage provision added to a standard title insurance policy to cover specific risks not included in the base policy Is Correct

Answer B: An additional coverage provision added to a standard title insurance policy to cover specific risks not included in the base policy

Title insurance endorsements expand coverage beyond the standard policy for specific risks. Common ALTA endorsements used in Delaware commercial transactions: survey/location (coverage for matters a current survey would reveal), access (confirming access to a public road), zoning (coverage if zoning prevents the intended use), and environmental liens.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

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