What is lenders title insurance?
Lender’s title insurance is usually required to get a mortgage loan. Lender’s title insurance protects your lender against problems with the title to your property—for example, if someone sues to say they have a claim against the home. Lender’s title insurance does not protect your investment in the home (your equity). If someone sues with a claim against your home, you are the first person responsible. The lender’s title insurance policy only covers claims that impact the lender’s loan. To protect your equity in the event of a title problem, you may want to purchase an owner’s title insurance policy.
Ask CFPB provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically.
Ask CFPB includes links or references to third-party resources or content. The CFPB does not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.