This is exactly it. Unfortunately, lenders don’t review documents the moment you buy the car, and I can confirm my job has had to do “return/repurchase” transactions for customers when their lender said “mm, nah” days or weeks after the purchase.
If they try to bond the title, the state will reject it and the lender will step up efforts to fuck them over for trying to circumvent the process. Circle of sovcit life.