Notary Signing Agent Practices Flashcards

Which signing type generally does NOT carry a three-day right of rescission?

Answer: Purchase money mortgage on a primary residence

Under TILA, the right of rescission does not apply to residential mortgage transactions used to buy the home.

The borrower notices a wrong loan amount on the Closing Disclosure at the table. What should the NSA do?

Answer: Contact the hiring company or title/escrow officer for instructions

NSAs never change loan terms; they contact the hiring company or lender and follow their instructions.

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

Answer: Three

TRID requires the Closing Disclosure to be received at least three business days before consummation.

An attorney-in-fact is signing for a borrower under a Power of Attorney. Which signature format is commonly required?

Answer: Principal's name, by the agent's name, as attorney-in-fact

Lenders typically require a format like 'Jane Doe, by John Doe, her attorney-in-fact,' following their specific instructions.

Which federal law requires an NSA to protect borrowers' nonpublic personal information?

Answer: Gramm-Leach-Bliley Act

The Gramm-Leach-Bliley Act requires safeguarding consumers' nonpublic personal financial information.

What does the Notice of Right to Cancel give the borrower?

Answer: Instructions for canceling the loan within the rescission period

The Notice of Right to Cancel explains the borrower's rescission right and how to exercise it.

A borrower wants the NSA to leave the notarized documents so the borrower can mail them later. What should the NSA do?

Answer: Decline and keep custody to return them per instructions

The NSA is responsible for keeping custody of executed documents and returning them as the hiring company instructs.