What is a Closing Protection Letter?

A Closing Protection Letter is added protection for the Insured Party (usually the lender/buyer) against actual loss of funds incurred within a specific transaction due to misconduct by the closing agent. The CPL explains the requirements for qualifying, the conditions that must be met, and what situations are excluded from coverage.  A closing protection letter is mandatory for all parties to a transaction, and is a form of insurance intended to provide coverage to specific parties of the transaction. 

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