Escrow & Title

A Massachusetts lender requires a 'lender's title insurance policy.' This policy protects:

AThe buyer against title defects
BThe lender's mortgage interest against title defects✓ Correct
CThe seller against buyer default
DBoth buyer and lender equally

Explanation

A lender's (mortgagee's) title insurance policy protects the lender's mortgage interest up to the loan amount. A separate owner's policy is needed to protect the buyer.

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