NSA - Notary Signing Agent Post-Signing Procedures and Compliance Questions and Answers 1 — Questions and Answers
Question 1: Immediately after a successful loan signing, the Notary Signing Agent realizes a minor clerical error was made on the notarial certificate of the Deed of Trust. The document package has not yet been shipped. What is the most appropriate next step for the NSA?
- Contact the signers to schedule a time to meet again and execute a new Deed of Trust.
- Correct the error according to state law, which may involve lining through the error, writing the correction, and initialing. (Correct answer)
- Ship the package as-is and wait for the title company to provide instructions on how to correct the error.
- Ask the borrower to make the correction and initial the change themselves.
Correct answer: Correct the error according to state law, which may involve lining through the error, writing the correction, and initialing.
If an error is discovered before the documents are returned, the NSA should correct the notarial certificate in accordance with their state's specific laws. Often, this involves striking through the error with a single line, writing the correct information, and adding their initials and sometimes the date. Contacting the signers to re-sign is usually only necessary if the error cannot be corrected according to state law or if the error was made by the signer in a way that requires a fresh document. Shipping a known error or having the borrower alter a notarial certificate is improper procedure.
Question 2: A Notary Signing Agent is preparing to ship a completed loan package. The instructions from the contracting company do not specify a particular shipping carrier or method. Which of the following is the best practice for the NSA to follow?
- Use the least expensive shipping option available to save the contracting company money.
- Drop the package in the nearest convenient drop box before the last pickup of the day.
- Contact the contracting company to clarify their preferred shipping carrier and service level. (Correct answer)
- Choose a major carrier like FedEx or UPS and select standard ground shipping.
Correct answer: Contact the contracting company to clarify their preferred shipping carrier and service level.
When shipping instructions are unclear or missing, the NSA must contact the hiring company for clarification. This prevents delays, ensures the package is sent via the company's preferred or account-billed carrier, and meets any specific delivery deadlines (e.g., overnight vs. ground). Using an unapproved method could lead to delays or the NSA bearing the shipping cost. While dropping at a staffed location is preferred over a drop box, the primary responsibility is to follow the hiring company's explicit instructions.
Question 3: Which of the following actions is a critical compliance step for a Notary Signing Agent to take after returning from a signing appointment but before shipping the documents?
- Depositing the payment check from the borrower.
- Invoicing the title company for the completed signing.
- Reviewing every document for missed signatures, initials, dates, and completed notarizations. (Correct answer)
- Making personal copies of key financial documents for their records.
Correct answer: Reviewing every document for missed signatures, initials, dates, and completed notarizations.
Before shipping, the NSA must perform a thorough quality check of the entire document package. This includes verifying that every signature, initial, and date is present, and that all notarial certificates are correctly and completely filled out. Missing a single signature or initial can delay the funding of the loan. Invoicing typically happens after the package is shipped, and making personal copies of the borrower's non-public information would be a major privacy violation.
Question 4: A borrower signs a Compliance Agreement during a loan closing. What is the primary purpose of this document that the Notary Signing Agent should be aware of?
- It confirms the borrower's compliance with all federal lending laws.
- It is the borrower's formal application for the loan.
- It obligates the borrower to cooperate in correcting any future clerical errors found in the loan documents. (Correct answer)
- It serves as the borrower's final receipt for all fees paid at closing.
Correct answer: It obligates the borrower to cooperate in correcting any future clerical errors found in the loan documents.
A Compliance Agreement, sometimes called an Errors and Omissions Agreement, binds the borrower to assist the lender in correcting typographical or clerical errors that may be discovered in the loan documents after the closing. This ensures the loan documents can be made fully compliant for sale on the secondary market. It does not relate to the borrower's overall legal compliance, the loan application, or closing fees.
Question 5: Regarding the financial aspects of an assignment, what is a recommended post-signing best practice for a Notary Signing Agent to ensure timely payment?
- Only accept cash payments directly from the borrower at the signing table.
- Submit a detailed invoice to the contracting company promptly after the signing is complete and the package is shipped. (Correct answer)
- Wait for the contracting company to send a payment automatically, as invoicing is not standard practice.
- Add your fee to the borrower's closing statement yourself before the signing.
Correct answer: Submit a detailed invoice to the contracting company promptly after the signing is complete and the package is shipped.
To ensure proper and timely payment, NSAs should have an effective system that includes submitting a clear and detailed invoice to the company that hired them. This should be done promptly after the service is rendered and the documents are properly returned. The invoice should detail the service provided, date, amount due, and payment terms. Accepting payment from the borrower is generally not permitted, and NSAs do not have the authority to alter closing statements.
Question 6: After completing a signing and shipping the documents, the Notary Signing Agent must handle the electronic copies of the loan package that were downloaded. According to the Notary Signing Agent Code of Conduct, what is the required action?
- Archive the electronic files for a period of seven years for audit purposes.
- Permanently delete all electronic copies of the documents from their computer and any storage devices. (Correct answer)
- Upload the electronic files to a secure cloud-based storage for their personal records.
- Email a copy of the signed package to the borrower for their records.
Correct answer: Permanently delete all electronic copies of the documents from their computer and any storage devices.
To protect consumers' non-public personal information, the Notary Signing Agent Code of Conduct requires NSAs to securely delete any electronic copies of loan documents from their computer and systems at the conclusion of an assignment. Retaining these sensitive documents poses a significant privacy risk. The contracting company is responsible for providing copies to the borrower.
NSA - Notary Signing Agent Post-Signing Procedures and Compliance Questions and Answers 1
Immediately after a successful loan signing, the Notary Signing Agent realizes a minor clerical error was made on the notarial certificate of the Deed of Trust.
The document package has not yet been shipped.
What is the most appropriate next step for the NSA?