Finance
What is 'title theory' versus 'lien theory' in mortgage law, and which does Rhode Island follow?
ARhode Island is a title theory state, meaning the lender holds title
BRhode Island is a lien theory state, meaning the borrower retains title and the mortgage is a lien on the property✓ Correct
CRhode Island follows both equally
DRhode Island has no statutory position on this issue
Explanation
In lien theory states like Rhode Island, the mortgagor (borrower) retains title to the property and the mortgage is simply a lien. In title theory states, the lender receives title until the mortgage is paid off.
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