Notary Signing Agent Practices Flashcards

Which document sets out how much the lender will hold monthly for taxes and insurance?

Answer: Initial Escrow Account Disclosure Statement

The Initial Escrow Account Disclosure shows expected escrow deposits and disbursements for taxes and insurance.

A borrower's driver's license expired last year and no other ID is available. Under NNA best practices, what should the NSA do?

Answer: Follow state law on acceptable ID and contact the hiring company if it is not satisfied

ID must meet state requirements (usually current or recently issued), and the hiring company should be told about ID problems.

What does an Occupancy Affidavit generally state?

Answer: Whether the borrower will occupy the property as a primary residence

The Occupancy Affidavit certifies the borrower's intended use of the property, which affects loan terms.

The NSA discovers a missed initial after the documents have shipped. What is the proper way to fix it?

Answer: Coordinate with the hiring company to have the borrower initial it, per their instructions

Only the borrower can supply missing initials or signatures, and the correction must be coordinated with the hiring company.

Which statement about an NSA's role in reverse mortgage signings is correct?

Answer: The NSA confirms the counseling certificate exists but does not counsel

HECM borrowers must complete HUD-approved counseling beforehand; the NSA only facilitates signing and does not counsel.

A borrower asks the NSA to witness and notarize a document in which the NSA is named as a beneficiary. What should the NSA do?

Answer: Decline because of a financial interest

Notaries must not notarize where they have a direct financial or beneficial interest in the transaction.

What is the NNA-recommended way to record each notarization performed at a loan signing?

Answer: An entry in the notary journal for each notarial act

The NNA recommends a journal entry for every notarial act, even where the state does not require one.