Lender’s Policy (Title Insurance)

Definition: A lender’s title insurance policy protects the lender’s insured mortgage interest against covered title problems.

Example

A bank requires a loan policy as part of financing a purchase so covered title defects affecting its security interest can be addressed.

Keep the distinction clear

The lender is the protected party under this policy. It does not substitute for an owner’s policy or protect the borrower’s equity merely because the borrower paid the premium.

Related terms

Owner’s Policy (Title Insurance) · Title Insurance · Mortgagee

Keep studying

Deeds, Abstracts, Title Opinions, and Title Insurance

References: CFPB: Lender’s title insurance · Florida DFS: Title insurance overview

Pronunciation (US): LEN-derz POL-uh-see (capitals show stress)

Pronunciation reference: Merriam-Webster