Escrow & Title
A lender's title insurance policy (loan policy) protects:
AThe buyer's equity interest in the property
BThe lender's interest in the property up to the outstanding loan balance✓ Correct
CBoth the buyer and the lender equally
DThe seller against post-closing title claims
Explanation
A lender's title insurance policy protects the lender's financial interest up to the outstanding loan balance. It does not protect the buyer's equity.
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