Lender's Title Policy

A Lenders policy is a title insurance policy that insures the mortgagee against loss caused by invalidity or unenforceability of the mortgage lien.  This may be the result of defective title, or against loss of priority of the mortgage. It is also known as a "Mortgagee Policy" or “Loan Policy”


The majority of primary mortgage lenders will require a Loan Policy when they make a loan. The amount of insurance for the Loan Policy is based on the dollar amount of the loan; typically, the amount of insurance decreases each year as the loan is paid off.