Notary Loan Signing Agent Definitions 2025
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2025/2026 Complete Questions And Correct
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Terms in this set (234)
An individual who applies for and receives funds in
Borrower (Mortgagor) the form of a loan and is obligated to repay the loan
in full under the terms of the loan.
Document that gives evidence of ownership of a
property. Also indicates the rights of ownership and
possession of the property. Individuals who will have
Title
legal ownership in the property are considered "on
title" and will sign the mortgage and other
documentation
The process of paying off one loan with the proceeds
Refinancing
from a new loan secured by the same property.
A licensed neutral third party that distributes legal
documents and funds on behalf of a buyer and seller.
The authority to ensure that the seller, lender, and
Escrow Company borrower all follow through on their agreed upon
terms. Escrow coordinates and keeps records of what
is going on between all the parties--seller, borrower,
lender and title company.
, A person with fiduciary responsibility to the buyer and
Escrow Agent seller, or the borrower and lender, to ensure that the
terms of the purchase/sale or loan are carried out.
The title company ensures that a piece of real estate is
legitimate, then issues title insurance for that property
that protects both the lender and the owner from
lawsuits as a result of title disputes. Their main
responsibility in a mortgage transaction is to
Title Company
accurately record liens, lien holders and ownership to
the property in a transaction--anything that is being
recorded against the property. They ensure that all
liens, lien holders and ownership is recorded with the
county the property resides in.
Insurance that protects a lender against any title
dispute that may arise over a particular property. It is
Title Insurance
required to close on a residence. A homeowner may
also purchase owner's title insurance.
The lender is the bank that is lending the money. The
lender has the biggest role in the process, because
without them lending the money, there would be no
Lender
need for a title or escrow company. This is the reason
why the majority of the documents in your loan
signings are lender documents.
The deed of trust, also known as the mortgage in
some states, has 5 main functions: 1) It records who
actually owns the property: e.g. Jane Doe and John
Doe, husband and wife as joint tenants; 2) It records
the amount the borrower is borrowing (the lien
Deed of Trust amount); 3) It records who is lending the money (the
lien holder); 4) It records the legal description of the
property (how the county recognizes the property
location via lot boundaries and lot location within the
county); 5) It states the rules and regulations which
the property owner must abide by.
, Amendments to the deed of trust that are recorded
with the deed. Something the lender wants to add to
Rider (to deed of trust)
the deed. Examples include VA riders, condo riders,
adjustable rate riders, or PUD riders.
The amount of debt, not counting interest, left on a
Principal
loan.
Document outlining the terms of the loan. For
example, the note would specify that the borrower is
Note borrowing $300,000 at a 4% interest rate, and will
have a certain fixed payment for 30 years. Also called
the contract.
The cost to the borrower for the money the bank
Interest Rate
lends to them.
Phrase indicating the interest rate will not change for
Fixed Rate Note the duration of the loan. This allows the payment to
stay the same for the full amount of the term.
A loan with an adjustable interest rate that will change
during it's term, often after a set amount of years of
fixed payments. The payment may be low initially
because it is based on payment that is 30 years, but
the rate will change/adjust after "X" years. The most
common adjustable rate terms are 3, 5, 7, or 10 years.
Adjustable Rate Mortgage After the fixed term is up, the interest rate will change
(ARM) on a yearly basis until it is completely paid off. Also
called 5/1, 7/1 or 10/1; ex: fixed for 5 years and
changes every year thereafter. After the initial term is
up, the rate will change via an index (usually the
treasury bill or the LIBOR) plus a margin set by the
lender. The margin never changes but the index will
go up or down.
Exam Questions Marking Scheme Newest
2025/2026 Complete Questions And Correct
Answers (Verified Answers)|Brand New Version!
Save
Terms in this set (234)
An individual who applies for and receives funds in
Borrower (Mortgagor) the form of a loan and is obligated to repay the loan
in full under the terms of the loan.
Document that gives evidence of ownership of a
property. Also indicates the rights of ownership and
possession of the property. Individuals who will have
Title
legal ownership in the property are considered "on
title" and will sign the mortgage and other
documentation
The process of paying off one loan with the proceeds
Refinancing
from a new loan secured by the same property.
A licensed neutral third party that distributes legal
documents and funds on behalf of a buyer and seller.
The authority to ensure that the seller, lender, and
Escrow Company borrower all follow through on their agreed upon
terms. Escrow coordinates and keeps records of what
is going on between all the parties--seller, borrower,
lender and title company.
, A person with fiduciary responsibility to the buyer and
Escrow Agent seller, or the borrower and lender, to ensure that the
terms of the purchase/sale or loan are carried out.
The title company ensures that a piece of real estate is
legitimate, then issues title insurance for that property
that protects both the lender and the owner from
lawsuits as a result of title disputes. Their main
responsibility in a mortgage transaction is to
Title Company
accurately record liens, lien holders and ownership to
the property in a transaction--anything that is being
recorded against the property. They ensure that all
liens, lien holders and ownership is recorded with the
county the property resides in.
Insurance that protects a lender against any title
dispute that may arise over a particular property. It is
Title Insurance
required to close on a residence. A homeowner may
also purchase owner's title insurance.
The lender is the bank that is lending the money. The
lender has the biggest role in the process, because
without them lending the money, there would be no
Lender
need for a title or escrow company. This is the reason
why the majority of the documents in your loan
signings are lender documents.
The deed of trust, also known as the mortgage in
some states, has 5 main functions: 1) It records who
actually owns the property: e.g. Jane Doe and John
Doe, husband and wife as joint tenants; 2) It records
the amount the borrower is borrowing (the lien
Deed of Trust amount); 3) It records who is lending the money (the
lien holder); 4) It records the legal description of the
property (how the county recognizes the property
location via lot boundaries and lot location within the
county); 5) It states the rules and regulations which
the property owner must abide by.
, Amendments to the deed of trust that are recorded
with the deed. Something the lender wants to add to
Rider (to deed of trust)
the deed. Examples include VA riders, condo riders,
adjustable rate riders, or PUD riders.
The amount of debt, not counting interest, left on a
Principal
loan.
Document outlining the terms of the loan. For
example, the note would specify that the borrower is
Note borrowing $300,000 at a 4% interest rate, and will
have a certain fixed payment for 30 years. Also called
the contract.
The cost to the borrower for the money the bank
Interest Rate
lends to them.
Phrase indicating the interest rate will not change for
Fixed Rate Note the duration of the loan. This allows the payment to
stay the same for the full amount of the term.
A loan with an adjustable interest rate that will change
during it's term, often after a set amount of years of
fixed payments. The payment may be low initially
because it is based on payment that is 30 years, but
the rate will change/adjust after "X" years. The most
common adjustable rate terms are 3, 5, 7, or 10 years.
Adjustable Rate Mortgage After the fixed term is up, the interest rate will change
(ARM) on a yearly basis until it is completely paid off. Also
called 5/1, 7/1 or 10/1; ex: fixed for 5 years and
changes every year thereafter. After the initial term is
up, the rate will change via an index (usually the
treasury bill or the LIBOR) plus a margin set by the
lender. The margin never changes but the index will
go up or down.
