Managing the Signing Assignment 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 Managing the Signing Assignment flashcards as text
What is the primary purpose of the Closing Disclosure (CD) in a real estate transaction?
Answer: To provide the borrower with final loan terms and closing costs at least three business days before closing
The Closing Disclosure is a federally required form that gives borrowers final loan terms and costs, and must be delivered at least three business days before consummation.
During a signing, a borrower crosses out a clause on one of the loan documents before signing it. The NSA should:
Answer: Stop the signing and immediately contact the hiring party to report the alteration
Borrowers generally cannot unilaterally alter loan documents; the NSA must halt and notify the hiring party because unauthorized changes can void the transaction.
What does a 'wet signature' requirement mean in the context of a loan signing?
Answer: Original physical signatures are required on the actual paper documents
A 'wet signature' refers to an original ink signature on a physical document, as opposed to an electronic or digital signature.
An NSA is asked to notarize a document for a borrower who is signing under a Power of Attorney. What must the NSA confirm?
Answer: That the POA document is valid, current, and covers the transaction, and that the lender has approved its use
The NSA must verify the POA is valid and lender-approved before proceeding, as not all lenders accept a POA for real estate transactions.
Which of the following is the NSA's responsibility when a borrower states they did not receive a copy of the loan documents before the signing appointment?
Answer: Inform the hiring party and proceed according to their instructions
The NSA should report the situation to the hiring party, who will determine how to proceed based on loan type and applicable disclosure timelines.
In the context of a signing assignment, what is a 'straw buyer' situation, and how should an NSA respond?
Answer: A person acting as buyer on behalf of another to circumvent lending rules; refuse to notarize and report the suspected fraud
A straw buyer arrangement is mortgage fraud; NSAs who suspect it must refuse to participate and report it to the appropriate authority.
After completing a signing, the NSA's call-back report to the hiring party should include:
Answer: Confirmation that signing is complete, any issues encountered, and the return shipping tracking number
The call-back report keeps the hiring party informed of completion status, any problems, and return shipment details so the transaction can proceed to funding.