ABSTRACT
This chapter explores the reasons for why title insurance interests mortgage lenders. By the phrases “mortgage lenders” or “lenders” is meant financial institutions which lend money on the security of a mortgage on residential, as opposed to commercial, property. The chapter describes the types of policy available in the US and what do they cover and exclude. It explains are the advantages of title insurance so far as lenders are concerned. There are two types of policy commonly issued in the US. The first is an owners’ policy which is used to insure interests of ownership and possession. The second type is the mortgagee policy which insures the collateral interest that the lender has in the property. A policy offers indemnity against defects in the conveyancing process that are not covered by registration of title and that recent experience has shown are not always adequately provided for by professional conveyancers.
