Managing the Signing Assignment Flashcards

When a signing agent receives a loan package and discovers several documents are missing, what is the correct first step?

Answer: Contact the title company or lender immediately to report the discrepancy

The NSA must notify the hiring party immediately when documents are missing so corrections can be made before or during the appointment.

A borrower asks the NSA to explain whether a particular loan term is favorable for them. The NSA should:

Answer: Decline to answer and suggest the borrower call their lender

NSAs must direct borrowers' substantive loan questions to the lender, as giving advice constitutes unauthorized practice of law or financial advising.

What does 'confirmation of appointment' typically require an NSA to verify before traveling to a signing?

Answer: The appointment time, location, contact information, and document delivery method

Confirming the appointment details—time, location, contact, and how documents will arrive—prevents unnecessary trips and ensures a smooth signing.

If a borrower is unavailable at the scheduled signing time due to an emergency, the NSA should:

Answer: Contact the hiring party to report the situation and await instructions

The NSA must report the failed appointment to the hiring party who will decide how to proceed, not make independent rescheduling decisions.

Which of the following best describes the NSA's role regarding the Right to Cancel (Notice of Right to Rescind)?

Answer: Ensure the borrower receives the required number of copies and signs the acknowledgment

The NSA ensures the borrower receives the correct number of copies and signs the acknowledgment form; interpreting or advising on rescission is outside the NSA's scope.

When shipping a completed loan package back to the title company, the NSA should:

Answer: Use the shipping method and carrier specified by the hiring party

The NSA must follow the hiring party's specific shipping instructions, including carrier, service level, and tracking requirements.

An NSA notices a discrepancy between the borrower's name on the identification and the name printed on the loan documents. The correct action is to:

Answer: Note the discrepancy and contact the hiring party for guidance before proceeding

Name discrepancies must be reported to the hiring party before the NSA proceeds, as corrections require authorization from the lender or title company.

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.

Which document in a mortgage loan package transfers the borrower's interest in real property to the lender as security for the loan?

Answer: Deed of Trust or Mortgage

The Deed of Trust (or Mortgage, depending on the state) pledges the property as collateral and is recorded in the county land records.

An NSA arrives at a signing and the borrower is visibly intoxicated. The NSA should:

Answer: Stop the signing, contact the hiring party, and document the situation

A notary cannot notarize for a person who appears to lack capacity; the NSA must halt the signing and report to the hiring party.

What is the significance of the 'funding date' vs. the 'closing date' in a real estate transaction?

Answer: The closing date is when documents are signed; the funding date is when the lender releases loan proceeds

Closing is the signing event, while funding occurs when the lender disburses funds, which may happen the same day or after the rescission period on refinances.

If a signing package contains two versions of the same document with different figures, the NSA should:

Answer: Halt the signing and contact the hiring party for clarification

Conflicting document versions indicate a package error that must be resolved by the hiring party before any signatures are obtained.

What is the purpose of an 'errors and omissions' (E&O) insurance policy for an NSA?

Answer: To protect the NSA from claims arising from mistakes made during the course of notarial duties

E&O insurance protects the NSA financially if a clerical error or oversight during the signing results in a claim or lawsuit.

During a refinance signing, the borrower realizes the interest rate on the Note differs from what they were quoted. The NSA should:

Answer: Confirm the borrower's concern, stop the signing, and contact the hiring party

Any discrepancy between quoted and document figures must be reported to the hiring party immediately; the NSA cannot advise on or alter loan terms.