|Title - I would say the title policy is not valid. The requirements of the insurance endorsements are not met.|
Lender - Lien is imperfect. There are a couple of ways to cure it and it will have to be cured.
Someone has a rate lock to deal with.
In order to correct this for the future, a head has to roll. It has to look like this doesn't happen all the time and someone or a company must be terminated and banished forever.