Mortgage Loan Officer National Exam Test
Prep UPDATED ACTUAL Exam Questions
and CORRECT Answers
Abandonment - CORRECT ANSWER - voluntary relinquishment of all
right,title,claim,and possession,with the intention of not reclaiming it
Abatement - CORRECT ANSWER - the suspension or cessation in whole or in part, of a
continuing charge, such as rent
Absolute Title - CORRECT ANSWER - Title which is exclusive to the person who has it,
No one else has any right, interest, or claim in the same property
Abstract of Title - CORRECT ANSWER - A written history of the title transactions or
conditions bearing on the title to a designated parcel of land. It covers the period from the
original source of title to the present, and summarizes all subsequent instruments of public record
by setting forth their material parts
Abutting Owner - CORRECT ANSWER - An owner of land which abuts or adjoins. The
term usually implies that the relative parts actually adjoin, but is sometimes loosely used without
implying more than close proximity.
Acceleration Clause - CORRECT ANSWER - A common provision of a mortgage and
note providing that the entire principal shall become immediately due and payable in the event of
default
Access (Easement of) - CORRECT ANSWER - In real property law, the term "access"
denotes the right vested in the owner of land which adjoins a road or other highway to go and
return from his own land to the highway without obstruction
,Accident and Health Premium - CORRECT ANSWER - an insurance premium paid by the
borrower along with mortgage payments each month that insures payment of the mortgage if the
borrower become disabled
Accrued Interest - CORRECT ANSWER - the interest earned for the period of time that
has elapsed since interest was last paid
Acquire - CORRECT ANSWER - In law of contracts and of descents, to become owner of
property; to make property one's own
Acre - CORRECT ANSWER - 43,560 square feet; 4,840 square yards; 160 square rods
Add-on-interest - CORRECT ANSWER - The full amount of interest calculated on the
original principal for the term of the loan, which is then added to the principal amount for an
installment loan so that it becomes part of the face amount of the promissory note.
Adjustable Rate Mortgage - CORRECT ANSWER - A mortgage that permits the lender to
adjust its interest rate periodically on the basis of movement in a specified index
Ad Valorem - CORRECT ANSWER - a tax or duty based on value and levied as a
percentage of that value; 30 mills per dollar (3.0%)
Adverse Possession - CORRECT ANSWER - a method of acquisition of title to real
property by possession for statuary period under certain conditions
Affidavit - CORRECT ANSWER - A sworn statement in writing, made before a public
official, usually a notary
After-Acquired Property Clause - CORRECT ANSWER - a clause in a mortgage
providing that any property acquired by the borrower after the date of the loan and mortgage will
automatically become additional security for the loan
, Agent - CORRECT ANSWER - One who is legally authorized by another to represent
him/her or act his/her behalf. For example, you may hire a broker to act as agent in selling your
property
Agreement of Sale - CORRECT ANSWER - A contract in which the buyer agrees to
purchase a specific property and the seller agrees to sell under the stated conditions. Also
refereed to as a sales contract
Alienation - CORRECT ANSWER - In real property law, the transfer of property and
possession of lands, tenements, or other things, from one person to another, The term is
particularly applied to absolute conveyances of real property
All-Risk Insurance - CORRECT ANSWER - An insurance policy that provides coverage
for every conceivable risk except those specifically excluded by the policy itself, as opposed to a
"named-perils" policy that covers only those risks specifically set forth in the policy.
Alta-american land title association - CORRECT ANSWER - A national association of
title insurance companies, abstractors, and attorneys, specializing in real property law. The
association speaks for the title insurance and abstracting industry and establishes standard
procedures and title policy forms
Amenity - CORRECT ANSWER - an aspect of a property that enhaces its value, Off-
street reserved parking within a condominium commnity, the nearness of good public
transporation, tennis courts or a
Amortization - CORRECT ANSWER - The gradual reduction of a debt by means of
periodic payment sufficient to pay principal and interest and thereby liquidate the debt
Amortization Schedule - CORRECT ANSWER - A table that outlines the schedule for
loan repayment. It shows the amount of principal and interest due at regular intervals. It also
shows the unpaid balance of the loan remaining after each payment
Prep UPDATED ACTUAL Exam Questions
and CORRECT Answers
Abandonment - CORRECT ANSWER - voluntary relinquishment of all
right,title,claim,and possession,with the intention of not reclaiming it
Abatement - CORRECT ANSWER - the suspension or cessation in whole or in part, of a
continuing charge, such as rent
Absolute Title - CORRECT ANSWER - Title which is exclusive to the person who has it,
No one else has any right, interest, or claim in the same property
Abstract of Title - CORRECT ANSWER - A written history of the title transactions or
conditions bearing on the title to a designated parcel of land. It covers the period from the
original source of title to the present, and summarizes all subsequent instruments of public record
by setting forth their material parts
Abutting Owner - CORRECT ANSWER - An owner of land which abuts or adjoins. The
term usually implies that the relative parts actually adjoin, but is sometimes loosely used without
implying more than close proximity.
Acceleration Clause - CORRECT ANSWER - A common provision of a mortgage and
note providing that the entire principal shall become immediately due and payable in the event of
default
Access (Easement of) - CORRECT ANSWER - In real property law, the term "access"
denotes the right vested in the owner of land which adjoins a road or other highway to go and
return from his own land to the highway without obstruction
,Accident and Health Premium - CORRECT ANSWER - an insurance premium paid by the
borrower along with mortgage payments each month that insures payment of the mortgage if the
borrower become disabled
Accrued Interest - CORRECT ANSWER - the interest earned for the period of time that
has elapsed since interest was last paid
Acquire - CORRECT ANSWER - In law of contracts and of descents, to become owner of
property; to make property one's own
Acre - CORRECT ANSWER - 43,560 square feet; 4,840 square yards; 160 square rods
Add-on-interest - CORRECT ANSWER - The full amount of interest calculated on the
original principal for the term of the loan, which is then added to the principal amount for an
installment loan so that it becomes part of the face amount of the promissory note.
Adjustable Rate Mortgage - CORRECT ANSWER - A mortgage that permits the lender to
adjust its interest rate periodically on the basis of movement in a specified index
Ad Valorem - CORRECT ANSWER - a tax or duty based on value and levied as a
percentage of that value; 30 mills per dollar (3.0%)
Adverse Possession - CORRECT ANSWER - a method of acquisition of title to real
property by possession for statuary period under certain conditions
Affidavit - CORRECT ANSWER - A sworn statement in writing, made before a public
official, usually a notary
After-Acquired Property Clause - CORRECT ANSWER - a clause in a mortgage
providing that any property acquired by the borrower after the date of the loan and mortgage will
automatically become additional security for the loan
, Agent - CORRECT ANSWER - One who is legally authorized by another to represent
him/her or act his/her behalf. For example, you may hire a broker to act as agent in selling your
property
Agreement of Sale - CORRECT ANSWER - A contract in which the buyer agrees to
purchase a specific property and the seller agrees to sell under the stated conditions. Also
refereed to as a sales contract
Alienation - CORRECT ANSWER - In real property law, the transfer of property and
possession of lands, tenements, or other things, from one person to another, The term is
particularly applied to absolute conveyances of real property
All-Risk Insurance - CORRECT ANSWER - An insurance policy that provides coverage
for every conceivable risk except those specifically excluded by the policy itself, as opposed to a
"named-perils" policy that covers only those risks specifically set forth in the policy.
Alta-american land title association - CORRECT ANSWER - A national association of
title insurance companies, abstractors, and attorneys, specializing in real property law. The
association speaks for the title insurance and abstracting industry and establishes standard
procedures and title policy forms
Amenity - CORRECT ANSWER - an aspect of a property that enhaces its value, Off-
street reserved parking within a condominium commnity, the nearness of good public
transporation, tennis courts or a
Amortization - CORRECT ANSWER - The gradual reduction of a debt by means of
periodic payment sufficient to pay principal and interest and thereby liquidate the debt
Amortization Schedule - CORRECT ANSWER - A table that outlines the schedule for
loan repayment. It shows the amount of principal and interest due at regular intervals. It also
shows the unpaid balance of the loan remaining after each payment
