Escrow & Title

A lender's title insurance policy in Utah protects:

AThe homeowner's equity in the property
BThe lender's interest in the property up to the outstanding loan balance✓ Correct
CBoth lender and owner equally
DTitle insurance for 20 years then expires

Explanation

A lender's title insurance policy (required by virtually all mortgage lenders) protects only the lender's interest, decreasing as the loan balance decreases. An owner's policy is needed to protect the buyer's equity interest.

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