Loan Signing Agent Procedures Flashcards

Under TILA, which type of loan typically gives the borrower a three-business-day right of rescission?

Answer: A refinance of the borrower's primary residence with a new lender

Rescission applies to non-purchase loans secured by a primary residence, such as refinances with a new lender and HELOCs.

When counting the three-business-day rescission period, which days are excluded?

Answer: Sundays and federal legal public holidays

For rescission purposes, business days include Saturdays but exclude Sundays and federal legal public holidays.

A borrower asks the signing agent whether a lower interest rate would be available elsewhere. What should the agent do?

Answer: Refer the borrower to the lender or loan officer

Signing agents cannot give financial or legal advice and must refer loan-term questions to the lender.

Which loan document is typically signed but NOT notarized?

Answer: Promissory note

The promissory note is the borrower's promise to repay and normally requires only a signature, not notarization.

How many copies of the Notice of Right to Cancel must each person entitled to rescind receive under Regulation Z?

Answer: Two

Regulation Z requires that each consumer with the right to rescind receive two copies of the notice.

A borrower's ID shows 'Robert J. Smith' but the loan documents print 'Robert James Smith.' What is the best course of action?

Answer: Have him sign exactly as the documents print if ID supports that name under state law, or contact the hiring company

The signer should sign as the name appears on the documents only when the ID adequately supports it; otherwise the agent contacts the hiring company.

What is the primary purpose of a Compliance Agreement (Errors and Omissions/Compliance) in a loan package?

Answer: To have the borrower agree to cooperate in correcting clerical errors in loan documents

Borrowers agree to sign corrected documents if clerical errors or omissions are later discovered.