Who does the mortgagee's title policy protect?

The mortgagee's title policy specifically protects the lender, which is the entity that provides the mortgage loan to the borrower (also known as the mortgagor). This insurance policy ensures that the lender's investment is safeguarded against any issues that may arise concerning the title of the property. These issues might include liens, encumbrances, or defects in the title that were not discovered during the closing process.

This policy covers the lender's financial interests, ensuring they can recover their investment if a title defect results in a loss. It does not provide the same protections for the buyer or seller, as they have their own distinct roles and types of title insurance. The mortgagor, while being the borrower, does not benefit from the mortgagee's title policy; instead, they may obtain a separate owner's title policy to protect their interests in the property. Therefore, the correct answer reflects the primary beneficiary of the mortgagee's title policy: the lender.