Escrow & Title

In Oklahoma, a lender's title insurance policy (loan policy) protects:

AThe buyer's equity in the property
BThe lender's security interest (the mortgage/deed of trust) up to the loan amount, against title defects that impair the lender's lien✓ Correct
CBoth buyer and lender equally
DThe title company from errors in their search

Explanation

A loan policy (lender's policy) protects the lender's lien position, not the buyer's equity. The coverage amount decreases as the loan balance decreases. Buyers need a separate owner's policy to protect their equity against covered title defects.

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