Escrow & Title
Which type of title insurance policy protects the lender against title defects?
AOwner's title insurance policy
BLender's (mortgagee's) title insurance policy✓ Correct
CHomeowner's warranty policy
DStandard hazard insurance policy
Explanation
A lender's (mortgagee's) title insurance policy protects the lender up to the loan amount. A separate owner's policy is needed to protect the buyer's equity against title defects.
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