Post-Signing Procedures and Compliance Flashcards

What does 'table funding' mean in a loan closing context?

Answer: The lender funding the loan simultaneously at the closing table

Table funding occurs when the lender provides loan proceeds at or immediately upon the completion of the closing, making funds available same day.

An NSA is asked by a borrower to explain whether they should sign an arbitration agreement in the loan package. The NSA should:

Answer: Advise the borrower to review it with their attorney and contact the lender

Providing legal advice is outside the NSA's scope; the borrower should consult their attorney or lender for guidance on contract terms.

What is the primary reason lenders require NSAs to use specific shipping carriers or accounts?

Answer: To ensure document security and allow the lender to track delivery centrally

Lenders use their own shipping accounts to maintain chain of custody control and receive automatic tracking notifications for critical loan documents.

An NSA completes a signing and later learns the borrower's identity may have been fraudulent. The NSA should:

Answer: Notify the hiring company and, if appropriate, report to law enforcement

Suspected identity fraud should be reported to the hiring company immediately, and law enforcement reporting may be appropriate depending on state law.

What is a 'straw buyer' in the context of mortgage fraud that an NSA should be aware of?

Answer: A person who purchases property on behalf of another to conceal the true buyer's identity

A straw buyer is used in mortgage fraud schemes to disguise the true beneficial owner, often to circumvent lending rules or launder money.

After a signing, how should an NSA handle leftover document copies that contain borrower personal information?

Answer: Shred them securely to protect borrower privacy

Any documents containing borrower personal information must be shredded or destroyed securely to comply with privacy laws and ethical obligations.

Which of the following best describes the NSA's responsibility when they suspect a document in the package may be forged?

Answer: Refuse to proceed with the signing and notify the hiring company immediately

If an NSA suspects document forgery, they should not proceed with the signing and must immediately notify the hiring company to prevent participation in fraud.