Mortgage Loan Originator (MLO) Licensing Practice Test 2025 – Your All-in-One Guide to Exam Success!

The document that encompasses the mortgage closing process is the title insurance policy. This document provides essential protection to the lender and borrower by ensuring that the title to the property is valid and free of liens or encumbrances, thus facilitating a clear transfer of ownership.

The mortgage application is critical as it contains the borrower's financial information and intentions regarding the loan, but it is primarily used in the initial stages of the loan process rather than during closing. Similarly, the good faith estimate outlines the costs associated with the loan, helping the borrower understand potential expenses. However, it does not play a direct role in the closing itself.

Given that the title insurance policy is a necessary document that ensures both parties are protected and that the transaction can proceed smoothly, it is essential to consider that the inclusion of the other documents—the mortgage application and good faith estimate—serves important but typically earlier roles in the loan process. Therefore, when all related documents are recognized, it reinforces that they collectively contribute to successfully completing the mortgage closing process. Thus, the combination of these documents being vital leads to the correct answer being that all of the above are essential in their respective roles.