The phrase "to protect the lender" means to take actions or create rules that ensure the lender does not lose their money or gets back its money if the borrower fails to repay it. Full definition
Private mortgage insurance and government mortgage insurance protect the lender against default and enable the lender to make a loan which the lender considers a higher risk. (homeproinspectionsllc.com)
Mortgage insurance protects lenders from losses relating to borrower default. (bpfund.com)
Mortgage insurance protects lenders from losses relating to borrower default. (bpfund.com)