Ethics and Best Practices Flashcards
7 cards from real NSA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Ethics and Best Practices flashcards as text
An NSA is working with an elderly borrower who appears confused about the loan purpose but is not visibly incapacitated. What is the best course of action?
Answer: Ask simple orientation questions and, if competency is in doubt, halt and notify the hiring party
When competency is uncertain, the NSA must assess carefully and stop the signing rather than risk notarizing for someone who cannot legally consent.
Which action by an NSA constitutes misrepresentation to a hiring party?
Answer: Reporting that a document was notarized when the borrower refused to sign
Falsely reporting that a notarization was completed when it was not is fraud and a serious ethical violation.
A borrower's spouse wants to be present at the signing but is not a party to the loan. What should the NSA do?
Answer: Allow the spouse to observe but ensure all notarial acts are performed with the signer alone
Non-parties may observe a signing, but the NSA must ensure the signer's willingness and identity screening is conducted directly with the signer.
What does the term 'unauthorized practice of law' mean in the context of NSA work?
Answer: An NSA providing legal interpretations or advice about loan terms without a law license
UPL occurs when a non-attorney provides legal guidance; for NSAs this typically arises from explaining what contractual provisions mean.
An NSA receives a call from a real estate agent who wants to know the loan amount from documents the NSA notarized. What should the NSA do?
Answer: Decline, as loan details are confidential and may only be disclosed by the lender
NSAs have a duty to maintain the confidentiality of all non-public information contained in loan documents regardless of who is asking.
Why should an NSA avoid accepting signing assignments from parties who have a direct interest in whether the loan closes?
Answer: It compromises the NSA's impartiality and creates a conflict of interest
Being hired by a directly interested party undermines the NSA's neutrality and could pressure them to overlook signing irregularities.
An NSA makes a journal entry that incorrectly records the signer's identification type. What is the proper way to correct the error?
Answer: Draw a single line through the error, write the correction, and initial and date it
Journal corrections should be made with a single strikethrough and initialed; using correction fluid or destroying records is improper and potentially fraudulent.