Escrow & Title

A lender's title insurance policy (loan policy) in Mississippi protects:

AThe homebuyer's equity
BThe lender's interest up to the outstanding loan balance✓ Correct
CBoth the buyer and lender equally
DThe title company against errors

Explanation

A lender's title insurance policy protects the mortgage lender's interest up to the amount of the outstanding loan. It does not protect the homeowner's equity; a separate owner's policy is needed for that.

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