Title Insurance and Title Search: What Mortgage Processors Need to Know
Title insurance protects the lender from defects in the property's chain of title. Understanding the title process helps processors catch issues before they delay closing.
What the Lender Requires
- Title commitment from title company (required before closing)
- HOA payoff statement if applicable
- Payoff statements for all existing liens
- Survey if required by lender or title company
How CTC Processes Title Insurance and Title Search Files
- 01Lender orders title
- 02Title company searches public records
- 03Title commitment issued
- 04CTC reviews exceptions
- 05Clear exceptions before closing
- 06Title policy issued at closing
Common Conditions Related to Title Insurance and Title Search
- Mineral rights review (extremely common in Colorado)
- HOA lien search
- Judgment lien subordination
- Mechanic's lien release for new construction or recent remodels
- Survey requirement if lender requires
How CTC Handles Title Insurance and Title Search
CTC reviews every title commitment for exceptions that could delay closing. Mineral rights severances, easements, and HOA liens are the most common Colorado issues. We flag these to the LO and coordinate resolution before the scheduled closing date.
Frequently Asked Questions
What is a title exception?
A title exception is something excluded from title insurance coverage — an easement, covenant, mineral rights severance, or encumbrance. CTC reviews Schedule B exceptions on every commitment.
How long does a title search take in Colorado?
Denver metro: 3–7 days. Rural Colorado counties with less organized records: 1–3 weeks. CTC orders title immediately on intake.
What are mineral rights and how do they affect my mortgage?
Mineral rights can be severed from surface rights. Most Colorado properties have severed mineral rights — typically not a dealbreaker, but some lenders require review of surface use agreements.