Escrow & Title
In Michigan, a lender's title insurance policy protects:
AThe buyer against title defects
BThe lender's interest in the property up to the outstanding loan balance✓ Correct
CThe seller from post-closing claims
DThe broker against liability
Explanation
A lender's (mortgagee's) title insurance policy protects the lender's security interest in the property up to the outstanding loan balance. It does not protect the buyer's equity interest — that requires a separate owner's policy.
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