Escrow & Title

A lender's title insurance policy in New York protects:

AThe homebuyer's equity in the property
BThe lender's interest up to the outstanding mortgage balance✓ Correct
CBoth the buyer and lender equally
DThe title company against claims

Explanation

A lender's title insurance policy (also called a loan policy) protects the lender's interest in the property up to the outstanding loan balance. A separate owner's policy is needed to protect the buyer's equity.

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