The ICL covers attorney errors regarding: the status of the title to the land encumbered by the mortgage; the validity, enforceability, or priority of the lien of said mortgage; obtaining documents necessary to establish the mortgage holder’s interest in the real estate; obtaining any document specifically required by the lender; the collection of funds due the lender; the fraud or dishonesty in handling the lender’s funds or documents related to the transaction.
This letter provides assurances that the lender may be compensated for losses resulting from certain claims arising from the title agent's negligent acts. The fee for the letter is a pass-through cost to the borrower like the lender's title insurance policy.Jan 24, 2011
A closing protection letter (sometimes “insured closing letter” or “CPL”) forms a contract between a title insurance underwriter and a lender, in which the underwriter agrees to indemnify the lender for actual losses caused by certain kinds of misconduct by the closing agent.Dec 30, 2011
It is good for 1 year from the date of the letter. However, transaction specific information such as the loan amount, name of parties, etc. can be modified or updated, if needed.
A closing protection letter (CPL) is issued by the title underwriter. This document ensures that the underwriter will protect its client from any mistakes made by the title agent who handles the escrow accounts associated with the transaction.Oct 20, 2020