NNA Loan Signing Agent Procedures 2

Question 1

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

Accepted Answer

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

Answer

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

Question 2

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

Accepted Answer

Sundays and federal legal public holidays

Answer

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

Question 3

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

Accepted Answer

Refer the borrower to the lender or loan officer

Answer

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

Question 4

Which loan document is typically signed but NOT notarized?

Accepted Answer

Promissory note

Answer

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

Question 5

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

Accepted Answer

Two

Answer

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

NNA - National Notary Association Certification Practice Test