Mortgage Loan Originator Licensing Practice Test 2026 – Complete Exam Prep

The Loan Estimate is focused on providing borrowers with important details about a loan transaction before they close, including estimated interest rates, monthly payments, and closing costs. Its purpose is to ensure that borrowers have the necessary information to make informed decisions prior to closing.

In contrast, post-closing disclosures are meant to inform borrowers of certain information regarding their mortgage loan and the terms of their escrow account after the transaction is finalized. Documents associated with post-closing disclosures include the Initial Escrow Account Statement, which outlines how funds are being allocated to the escrow account; the Annual Escrow Statement, which provides an annual review of the escrow account’s activity; and the Initial Rate Change Disclosure, which informs borrowers about potential changes in their interest rate in adjustable-rate mortgages.

These post-closing disclosures serve to protect consumers and help them understand the ongoing aspects of their mortgage after they have signed the loan documents, which is distinctly different from the intent and timing of the Loan Estimate.