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ARTICLE · 06 AUGUST 2015

Closing Protection Letters - Questions Asked By Title Agents

Reinhart, Boerner, Van Deuren SC
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Lenders entrust loan money to your company when your underwriter puts its financial strength behind you by agreeing to pay the lender if the money is stolen or you fail to follow the closing instructions.

United StatesInsurance
J Bushnell Nielsen
J Bushnell Nielsen
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What is the Purpose of a Closing Protection Letter?

In a closing protection letter, your underwriter agrees to reimburse the addressee if your title agency is guilty of fraud or dishonesty in handling the closing money or documents, which courts have said covers more than just theft of the loan money, or if you fail to follow certain written closing instructions.

Lenders entrust loan money to your company when your underwriter puts its financial strength behind you by agreeing to pay the lender if the money is stolen or you fail to follow the closing instructions.

How Does the Closing Protection Letter Help Me?

Title insurers issue closing protection letters to make it possible for you to serve as a loan closer.

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