NSA - Notary Signing Agent Loan Documents and Procedures Questions and Answers 1

Question 1

During a loan signing, the borrower asks for your opinion on whether the interest rate on their Promissory Note is competitive. What is the appropriate action for the Notary Signing Agent to take?

Accepted Answer

Advise the borrower that you are prohibited from offering any opinions or advice and suggest they contact their lender.

Answer

Provide a general overview of current market rates without giving a direct opinion.

Answer

Explain that the rate seems fair for their type of loan.

Answer

Refuse to continue with the signing until the borrower confirms their satisfaction with the rate.

Question 2

A borrower in a refinance transaction is signing the Notice of Right to Cancel. Which of the following is the MOST critical procedural step for the Notary Signing Agent regarding this document?

Accepted Answer

Making sure the rescission period dates are filled in correctly and providing the borrower with two copies.

Answer

Ensuring the document is signed and dated by the borrower.

Answer

Notarizing the borrower's signature on the document.

Answer

Explaining the financial implications of canceling the loan.

Question 3

While reviewing a loan package before an appointment, a Notary Signing Agent notices the Deed of Trust contains a pre-printed notarial certificate from a state other than where the signing will occur. What should the NSA do?

Accepted Answer

Cross out the out-of-state certificate and attach a loose certificate that complies with the signing state's laws.

Answer

Refuse the assignment because the documents are incorrect.

Answer

Use the pre-printed certificate as is, since it's part of the lender's official document.

Answer

Contact the borrower to see if they are comfortable signing with the out-of-state certificate.

Question 4

Which of the following documents in a typical loan package is the borrower's promise to repay the loan and is NOT notarized?

Accepted Answer

Promissory Note

Answer

Deed of Trust

Answer

Occupancy Affidavit

Answer

Signature/Name Affidavit

Question 5

A Notary Signing Agent is at a signing where the borrower's name on their driver's license is 'James A. Smith,' but the loan documents list the name as 'James Allen Smith.' What is the best course of action?

Accepted Answer

Immediately stop the signing and contact the contracting company for instructions.

Answer

Proceed with the signing as the names are substantially similar.

Answer

Have the borrower sign as 'James Allen Smith' and make a note in the journal.

Answer

Ask the borrower to provide a second form of ID that shows their middle name.

Question 6

When presenting documents during a loan signing, the Notary Signing Agent should:

Accepted Answer

Name the document, state its general purpose, and point to where signatures, dates, or initials are required.

Answer

Read each document aloud to the borrower to ensure they understand everything.

Answer

Only point to the signature lines without saying anything to avoid giving legal advice.

Answer

Summarize the legal consequences of each document for the borrower.