Finance
A Montana lender requires a title insurance commitment (binder) before funding a loan because:
AMontana law requires it for all transactions
BThe commitment assures the lender that title insurance will be issued, protecting against title defects✓ Correct
CIt is required by HUD for all mortgage loans
DThe commitment replaces the need for a full title search
Explanation
A title insurance commitment (binder) assures the lender that a title insurance policy will be issued after closing, protecting the lender's interest against title defects discovered after funding.
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