WTF is a Closing Protection Letter (CPL)?

Photo by Engin Akyurt

The Closing Protection Letter protects the lender and/or the buyer — the insured party — if there is misconduct by the closing agent. It’s a contract between a title insurance company and a lender. The protection is for the actual loss of funds incurred due to the closing agent’s misconduct.

The CPL explains the requirements for a claim and the conditions needed to be met. It will also…