Which of the following is NOT a reason lenders may accept title insurance?

Lenders may accept title insurance for several reasons, but one key reason it is not relied on is because title insurance does not necessarily ensure full ownership rights immediately. Title insurance primarily protects against losses due to defects in the title, such as outstanding liens or issues from previous owners that may not be uncovered during standard title searches. While it provides coverage against these potential issues, it does not guarantee that ownership rights are fully established at the moment of closing; rather, it mitigates risks associated with those rights.

The other options reflect valid reasons why lenders might accept title insurance. Gap coverage refers to protection for claims that arise after a title search and before the closing, thus addressing potential issues that could occur in that interim period. Facilitating transactions when a Real Property Report (RPR) is unavailable refers to how title insurance can enable closings without all standard documentation, making it more flexible for lenders. Additionally, title insurance can cover issues that may not be resolved quickly, contributing to the lender's security against unresolved claims on the title after the transaction is completed.