Loan Signing Agent Procedures Flashcards

Under TRID, how many business days before consummation must the borrower receive the Closing Disclosure?

Answer: Three

The CFPB's TRID rule requires the Closing Disclosure to be received at least three business days before consummation.

During a signing, the borrower notices the loan amount on the note differs from what they were promised. What should the signing agent do?

Answer: Pause and contact the title/escrow company or lender for instructions

Signing agents must not alter loan terms or reassure borrowers; they contact the hiring party for direction.

Which statement about errors and omissions (E&O) insurance for signing agents is correct?

Answer: It protects the signing agent against claims arising from unintentional mistakes

E&O insurance protects the agent, while a notary bond protects the public.

The deed of trust in a loan package typically requires which notarial act?

Answer: Acknowledgment

Security instruments like the deed of trust or mortgage are recorded and normally require an acknowledgment.

What is the main function of an Occupancy Affidavit in a loan package?

Answer: To have the borrower swear whether they will occupy the property as a primary residence

Occupancy status affects loan terms, so the borrower attests to intended occupancy, usually under oath.

After completing a signing, what should the agent do with copies or scans of the borrower's loan documents?

Answer: Retain only what is required and securely destroy or never keep unauthorized copies

Loan documents contain nonpublic personal information protected by privacy laws such as GLBA, so agents should not keep unauthorized copies.

A borrower wants to sign using an attorney-in-fact under a power of attorney. What must the signing agent confirm first?

Answer: That the lender/title company has approved the POA use and provided signing instructions

Lenders must pre-approve POA use and specify the signature format, such as 'Jane Doe by John Doe, attorney-in-fact.'