Credit Evaluation School Dec 2022

Internal Use Only

Primary Documents Title Commitment & Title Policy: Commitment for Title Insurance is issued once the title search is complete, describing everything that was uncovered during the search. It is also a binder promising to issue a title policy once the requirements laid out in the commitment are met. Title insurance will provide the bank for defending against any lawsuit against the bank’s insured title & will either clear up the title problems or pay the insured’s (bank’s) loss.

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Internal Use Only

Primary Documents Mortgage (Deed of Trust): The mortgage conveys the security interest from the borrower to the bank. Also called a Deed of Trust, gives the lender the right to foreclose on the property being used to secure the loan. The mortgage document must be recorded at the county records office to ensure that the bank’s security interest is protected.

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