Notary Public Loan Signing Agent (NSA) Procedures & Mortgage Documents

Question 1

What is the primary role of a Notary Signing Agent (NSA)?

Accepted Answer

To facilitate the signing and notarization of real estate loan document packages at closings

Answer

To provide legal advice to borrowers about the terms of their mortgage

Answer

To underwrite and approve mortgage loan applications

Answer

To act as an escrow officer and disburse funds at closing

Question 2

A borrower at a loan signing asks the NSA whether their interest rate is competitive with current market rates. The NSA should:

Accepted Answer

Refer the borrower to their lender or a financial advisor, as this is outside the NSA's role

Answer

Compare the rate to recent advertised rates and offer an opinion

Answer

Explain the amortization schedule to help the borrower assess the total cost

Answer

Advise the borrower to rescind the loan if the rate seems unfavorable

Question 3

What is the Right of Rescission in the context of a loan signing?

Accepted Answer

The borrower's federally mandated right to cancel a refinance or home equity loan within 3 business days of signing

Answer

The lender's right to call the loan due immediately upon default

Answer

The title company's right to reschedule a closing within 72 hours

Answer

The notary's right to decline to notarize a document that appears fraudulent

Question 4

Which document in a real estate loan package itemizes all the closing costs, lender fees, and financial details of the transaction?

Accepted Answer

The Closing Disclosure (or HUD-1 Settlement Statement for applicable transactions)

Answer

The Promissory Note

Answer

The Deed of Trust or Mortgage

Answer

The Truth in Lending (TIL) Disclosure

Question 5

What should a Notary Signing Agent do if a borrower refuses to sign one of the required documents in the loan package?

Accepted Answer

Contact the title company or lender immediately to report the issue and receive further instructions

Answer

Notarize the remaining documents and attach a note explaining the refusal

Answer

Attempt to persuade the borrower by explaining the document's importance

Answer

Leave all unsigned documents with the borrower and return the rest of the package

Question 6

What does the Promissory Note in a real estate loan package represent?

Accepted Answer

The borrower's legally binding written promise to repay the loan under specified terms

Answer

The borrower's pledge of the property as collateral to secure repayment of the loan

Answer

The lender's commitment to fund the loan at the agreed interest rate

Answer

The title company's guarantee of clear and marketable title to the property