Finance

In Mississippi, which is the primary purpose of title insurance from the lender's perspective?

ATo ensure the property will appreciate
BTo protect the lender's mortgage lien position against title defects that could impair the lender's security interest✓ Correct
CTo insure the borrower against property damage
DTo guarantee the appraisal value

Explanation

A lender's title insurance policy (loan policy) protects the lender's security interest (mortgage lien) against title defects that could result in the lien being invalid, unenforceable, or junior to another claim.

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