Which of the following is a benefit of title insurance for lenders?

Title insurance provides significant protection for lenders by safeguarding against potential claims or defects in the title of the property. When a lender issues a mortgage, they are securing their investment based on the validity of the property title. Title insurance protects them from losses that may arise from undiscovered issues such as undisclosed liens, forgery, or other title defects that could jeopardize their secured interest.

By obtaining title insurance, lenders gain peace of mind, knowing they have financial protection should any legal claims or disputes arise regarding ownership. This benefit is crucial, as it allows lenders to proceed with mortgage transactions with confidence, knowing they are protected from unforeseen challenges related to title issues.

The other options do not accurately reflect the core advantages of title insurance. For instance, while mortgage rates might be influenced by various factors, title insurance does not inherently increase them; it functions more to protect interests than to expedite processes or reduce maintenance costs.