Loan Signing Agent Procedures Flashcards

A refinance is signed on a Thursday with no holidays that week. When does the rescission period typically expire?

Answer: Midnight Monday

Counting Friday, Saturday, and Monday (Sunday excluded), the right expires at midnight Monday.

Which party usually hires a Notary Signing Agent for a loan closing?

Answer: The title, escrow, or signing service company

Title/escrow companies, lenders, or signing services typically engage the NSA.

A borrower who speaks only Spanish asks the English-speaking agent to explain the documents. What is appropriate?

Answer: Contact the hiring company, as the agent must be able to communicate directly and cannot translate documents

Notaries generally must communicate directly with the signer, and agents should not translate legal documents, so the hiring company must be contacted.

Which form authorizes the lender to obtain a borrower's tax return transcripts from the IRS?

Answer: Form 4506-C

IRS Form 4506-C lets authorized lenders request tax transcripts through the IVES program.

Rescission applies to which of these transactions on a primary residence?

Answer: A home equity line of credit (HELOC)

HELOCs on a primary residence carry a right of rescission under TILA.

The borrower signs the notary journal but refuses to sign the Signature/Name Affidavit. What should the agent do?

Answer: Call the hiring company before proceeding

Any refusal to sign a required document must be reported to the hiring party for instructions.

What is the main purpose of the Initial Escrow Account Disclosure Statement?

Answer: To show projected escrow payments for taxes and insurance over the first year

Under RESPA, it itemizes anticipated escrow deposits and disbursements for the first year.