Mortgage Loan Originator Practice Exam
Questions ACTUAL UPDATED
QUESTIONS AND CORRECT ANSWERS
The lender of mortgage money is known as the:
A. trustee
B. mortgagor
C. mortgagee
D. trustor - CORRECT ANSWERS✅✅C. mortgagee
Which of the following methods that might be employed to sell a mortgaged property is best
for the seller in regard to future legal resonsibilites?
A. an assumption without release
B. a contract for deed sale
C. a cash-out sale
D. a wrap-around mortgage - CORRECT ANSWERS✅✅C. a cash-out sale
From the following list, which is not a feature of a promissory note?
A. personal liability
B. a pledge of property as security
C. negotiability
D. promise to repay - CORRECT ANSWERS✅✅B. a pledge of property as security
A "land contract for deed" financing and sale agreemebt is signed:
A. only by the buyer/seller
B. only by the lender
C. only by the seller/lender
D. by both the buyer/borrower and the seller/lender - CORRECT ANSWERS✅✅D. by both
the buyer/borrower and the seller/lender
, Identify which is the incorrect statement in the following list regarding promissory notes and
mortgages.
A. the promissory note secures the accompanying mortgage
B. the provisions of the promissory note take precedence over the accompanying
C. Both the promissory note and the mortgage contain an acceleration clause
D. The promissory note is negotiable, whereas the mortgage is not - CORRECT
ANSWERS✅✅A. the promissory note secures the accompanying mortgage
Regulations which set forth the manner of recording deeds are put in place by:
A. State statutory laws
B. Attorney General's Office
C. National Board of Realtors
D. Title Attorney - CORRECT ANSWERS✅✅A. State statutory laws
When a property is sold "subject to a mortgage", and the buyer defaults on the mortgage, the
lender can:
A. sue the buyer for the unpaid balance
B. sue the seller for the unpaid balance
C. sue the buyer and the seller for the unpaid balance
D. do nothing - CORRECT ANSWERS✅✅B. sue the seller for the unpaid balance
"B" wants to assume "S's" Mortgage with no personal liability. He should:
A. Have "S" sign a contract releasing him
B. Have the lender sign a contract releasing him
C. Assume the property "subject to"
D. cannot assume the property without having personal liability - CORRECT
ANSWERS✅✅C. Assume the property "subject to"
Pledging Property without giving possession rights to a lender is called:
A. hypothecation
B. defeasance
Questions ACTUAL UPDATED
QUESTIONS AND CORRECT ANSWERS
The lender of mortgage money is known as the:
A. trustee
B. mortgagor
C. mortgagee
D. trustor - CORRECT ANSWERS✅✅C. mortgagee
Which of the following methods that might be employed to sell a mortgaged property is best
for the seller in regard to future legal resonsibilites?
A. an assumption without release
B. a contract for deed sale
C. a cash-out sale
D. a wrap-around mortgage - CORRECT ANSWERS✅✅C. a cash-out sale
From the following list, which is not a feature of a promissory note?
A. personal liability
B. a pledge of property as security
C. negotiability
D. promise to repay - CORRECT ANSWERS✅✅B. a pledge of property as security
A "land contract for deed" financing and sale agreemebt is signed:
A. only by the buyer/seller
B. only by the lender
C. only by the seller/lender
D. by both the buyer/borrower and the seller/lender - CORRECT ANSWERS✅✅D. by both
the buyer/borrower and the seller/lender
, Identify which is the incorrect statement in the following list regarding promissory notes and
mortgages.
A. the promissory note secures the accompanying mortgage
B. the provisions of the promissory note take precedence over the accompanying
C. Both the promissory note and the mortgage contain an acceleration clause
D. The promissory note is negotiable, whereas the mortgage is not - CORRECT
ANSWERS✅✅A. the promissory note secures the accompanying mortgage
Regulations which set forth the manner of recording deeds are put in place by:
A. State statutory laws
B. Attorney General's Office
C. National Board of Realtors
D. Title Attorney - CORRECT ANSWERS✅✅A. State statutory laws
When a property is sold "subject to a mortgage", and the buyer defaults on the mortgage, the
lender can:
A. sue the buyer for the unpaid balance
B. sue the seller for the unpaid balance
C. sue the buyer and the seller for the unpaid balance
D. do nothing - CORRECT ANSWERS✅✅B. sue the seller for the unpaid balance
"B" wants to assume "S's" Mortgage with no personal liability. He should:
A. Have "S" sign a contract releasing him
B. Have the lender sign a contract releasing him
C. Assume the property "subject to"
D. cannot assume the property without having personal liability - CORRECT
ANSWERS✅✅C. Assume the property "subject to"
Pledging Property without giving possession rights to a lender is called:
A. hypothecation
B. defeasance
