A Closing Protection Letter (CPL), also called an insured closing letter, is issued by the title insurance underwriter to a lender (and sometimes the buyer and seller). It indemnifies the lender against actual loss caused by the title or settlement agent’s dishonesty, fraud, or misappropriation of closing funds, or by the agent’s failure to comply with the lender’s written closing instructions and the conditions for issuing the title policy. Lenders almost always require a CPL before wiring loan funds, because it extends the underwriter’s backing to the conduct of the closing itself — not just the title. There’s usually a small fee, and availability and exact terms are governed by state regulation and the underwriter. Your title company provides the CPL to the lender as part of opening and closing the file.