Escrow & Title
In Massachusetts, the 'closing protection letter' from a title insurance company protects:
AThe title insurer from losses
BThe lender from losses resulting from the closing attorney's failure to properly follow the lender's closing instructions✓ Correct
CThe buyer from the seller's misrepresentations
DBoth parties from market value fluctuations
Explanation
A closing protection letter (CPL) is issued by the title insurer to the lender, protecting the lender from losses caused by the closing agent's fraud, dishonesty, or failure to follow the lender's written closing instructions.
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