Mortgage Policy from title company?

[Jonathan Sher]

Hello BP friends,

I am closing on a house next week and receiving private financing from a family member for the purchase. The title company is going to record the deed of trust, but are saying that their underwriter is requiring a "mortgage policy". My question is, is the mortgage policy basically title insurance for the lender? Is this even neccesary? I think they are just trying to nickle and dime me...

Thanks!