Escrow & Title

A lender's title insurance policy protects:

AThe buyer's equity in the property
BOnly the lender's interest up to the loan balance✓ Correct
CBoth buyer and lender equally
DThe seller's proceeds at closing

Explanation

A lender's (mortgagee's) title insurance policy protects only the lender's interest up to the outstanding loan balance. It does not protect the buyer's equity — that requires a separate owner's policy.

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