Escrow & Title
A lender's title insurance policy in New Mexico protects:
AThe buyer's equity in the property
BThe lender's interest in the property up to the loan amount✓ Correct
CBoth the buyer and lender equally
DThe title company against errors
Explanation
A lender's (mortgagee's) title insurance policy protects the lender's security interest up to the outstanding loan balance. A separate owner's policy is needed to protect the buyer's equity.
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