Conducting a Loan Signing Flashcards

Before presenting documents to borrowers, what should an NSA do with the loan package?

Answer: Review the package to ensure it is complete and in order

The NSA should review the loan package before the signing to confirm all documents are present and properly organized.

When a borrower asks an NSA to explain what a specific loan term means, the NSA should:

Answer: Refer the borrower to the lender or loan officer for clarification

NSAs must not provide legal or financial advice; they should direct borrowers to the lender or loan officer for explanations.

Which document in a loan package informs the borrower of the total cost of the loan over its lifetime?

Answer: Truth-in-Lending Disclosure (TIL/TILA)

The Truth-in-Lending Disclosure (TILA) outlines the APR, finance charge, and total payments over the loan term.

What is the proper way to handle a document that requires a borrower's initials on every page?

Answer: Remind the borrower to initial each required page before proceeding

The NSA must ensure the borrower initials every page that requires initials to avoid rejection of the loan package.

At a loan signing, the borrower notices their name is misspelled on several documents. What should the NSA do?

Answer: Contact the hiring party for instructions before proceeding

Name discrepancies must be reported to the hiring party (title company or lender) for guidance before the signing continues.

Which of the following best describes the NSA's role during the actual signing appointment?

Answer: Facilitate the signing of documents and notarize as required

The NSA's role is to guide borrowers through the signing process and notarize applicable documents—not to advise.

What should an NSA do if a borrower refuses to sign a required document during the closing?

Answer: Stop the signing, document the refusal, and notify the hiring party

If a borrower refuses to sign, the NSA must stop the signing, note the refusal, and report it to the title company or lender.