Nationwide Mortgage Licensing System (NMLS) Practice Exam

What is the term for when the mortgagor and mortgagee title insurance policies are issued at the same time?

1. Simultaneous issue

2. Concurrent issue

3. Subsequent issue

4. Dual issue

The correct answer is: Simultaneous issue

The term used when both the mortgagor and mortgagee title insurance policies are issued simultaneously is "simultaneous issue." This process streamlines the title insurance procurement by allowing the policies to be issued together, often leading to lower overall costs. In many cases, title companies will offer discounts for simultaneous policies due to the efficiency gains from processing both policies at the same time. This practice is particularly beneficial in real estate transactions, as it provides both parties—borrowers and lenders—with the necessary protection against title defects efficiently and cost-effectively. The other terms listed, while they may seem relevant, do not accurately describe this specific occurrence in the title insurance industry. "Concurrent issue" can imply that the policies are issued at the same time but doesn’t carry the same established meaning as simultaneous issue. "Subsequent issue" would suggest a separate issuance occurring later, which is not the case here. "Dual issue" might imply two simultaneous processes, but it isn't the conventional term used in the industry for the joint issuance of these policies.