Practice Test Geeks(NSA) Notary Signing Agent Certification Practice Test
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Key Mortgage Closing Documents 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 Key Mortgage Closing Documents flashcards as text

  1. A borrower asks the NSA to explain whether the interest rate on the Closing Disclosure is locked. The NSA should:

    Answer: Decline to explain and refer the borrower to the lender

    NSAs are prohibited from explaining or interpreting document terms; they must refer all substantive questions to the lender or settlement agent.

  2. The 4506-C form signed at closing authorizes the IRS to:

    Answer: Release tax transcripts to the lender for income verification

    IRS Form 4506-C (Request for Transcript of Tax Return) allows the lender to verify the borrower's income directly with the IRS.

  3. A Signature/Name Affidavit is used at closing primarily to:

    Answer: Resolve discrepancies between name variations appearing on closing documents

    The Name Affidavit allows the borrower to declare under oath that various name forms (e.g., 'Robert J. Smith' and 'Bob Smith') all refer to the same person.

  4. The Borrower's Certification and Authorization form typically allows the lender to do all of the following EXCEPT:

    Answer: Sell the loan to investors without further notice

    Selling the loan on the secondary market is covered by the Transfer of Servicing Disclosure, not the Borrower's Certification and Authorization.

  5. On a purchase transaction, which document legally conveys the real property from seller to buyer?

    Answer: The Warranty Deed or Grant Deed

    The Warranty Deed (or Grant Deed in some states) transfers actual ownership of the property from seller to buyer and is recorded in public records.

  6. An ALTA Settlement Statement differs from a Closing Disclosure primarily because it:

    Answer: Shows all parties' debits and credits including the seller's side

    The ALTA Statement is a settlement agent's tool that shows both buyer and seller columns, providing a complete financial picture of the transaction.

  7. If a borrower refuses to sign the Compliance Agreement, what should the NSA do?

    Answer: Note the refusal and contact the lender or title company immediately

    Any unsigned required document is a closing problem; the NSA must notify the lender or title company without attempting to resolve it independently.