|What is a Lender's Policy?
A lender's policy, also known as a loan policy or a
mortgage policy, protects the lender against loss due to
unknown title defects. It also protects the lender's interest
from certain matters which may exist, but may not be
known at the time of the sale.
This policy only protects the lender's interest. It does not
protect the purchaser. That is why a real estate purchaser
needs an owner's policy.
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