A Policy of title insurance is required by most lenders on most mortgage loans. These organizations invest their money that belongs to their customers, and so they must be concerned with the safety of their mortgage investment. 

The lender's title insurance policy guaranteees the lending institution that the person to whom it is making a mortgage loan has title to the real estate that is pledged as security. The lender needs assurance that it has a valid and enforceable lien and that no other claimant has a prior claim.