NSA Conducting a Loan Signing 2 — Questions and Answers
Question 1: Before presenting documents to borrowers, what should an NSA do with the loan package?
- Sign the documents on behalf of the borrower
- Review the package to ensure it is complete and in order (Correct answer)
- Remove any pages that appear redundant
- Submit the package to the title company first
Correct answer: Review the package to ensure it is complete and in order
The NSA should review the loan package before the signing to confirm all documents are present and properly organized.
Question 2: When a borrower asks an NSA to explain what a specific loan term means, the NSA should:
- Provide a detailed financial explanation based on their knowledge
- Refer the borrower to the lender or loan officer for clarification (Correct answer)
- Skip that document and move on
- Translate the term into simpler language from memory
Correct answer: Refer the borrower to the lender or loan officer for clarification
NSAs must not provide legal or financial advice; they should direct borrowers to the lender or loan officer for explanations.
Question 3: Which document in a loan package informs the borrower of the total cost of the loan over its lifetime?
- Deed of Trust
- Truth-in-Lending Disclosure (TIL/TILA) (Correct answer)
- Notice of Right to Cancel
- Compliance Agreement
Correct answer: Truth-in-Lending Disclosure (TIL/TILA)
The Truth-in-Lending Disclosure (TILA) outlines the APR, finance charge, and total payments over the loan term.
Question 4: What is the proper way to handle a document that requires a borrower's initials on every page?
- Initial only the signature page on the borrower's behalf
- Remind the borrower to initial each required page before proceeding (Correct answer)
- Skip initialing if the borrower finds it tedious
- Have the borrower sign the last page to cover all initials
Correct answer: Remind the borrower to initial each required page before proceeding
The NSA must ensure the borrower initials every page that requires initials to avoid rejection of the loan package.
Question 5: At a loan signing, the borrower notices their name is misspelled on several documents. What should the NSA do?
- Correct the spelling themselves and proceed
- Contact the hiring party for instructions before proceeding (Correct answer)
- Ask the borrower to initial next to the error and continue
- Complete the signing and note the error in a cover letter
Correct answer: Contact the hiring party for instructions before proceeding
Name discrepancies must be reported to the hiring party (title company or lender) for guidance before the signing continues.
Question 6: Which of the following best describes the NSA's role during the actual signing appointment?
- Negotiate loan terms on behalf of the borrower
- Facilitate the signing of documents and notarize as required (Correct answer)
- Provide legal counsel to ensure the borrower understands the loan
- Verify the borrower's credit score and income
Correct answer: Facilitate the signing of documents and notarize as required
The NSA's role is to guide borrowers through the signing process and notarize applicable documents—not to advise.
Question 7: What should an NSA do if a borrower refuses to sign a required document during the closing?
- Sign it on the borrower's behalf to complete the package
- Force the borrower to sign or the loan will be void
- Stop the signing, document the refusal, and notify the hiring party (Correct answer)
- Remove the unsigned document from the package and proceed
Correct answer: Stop the signing, document the refusal, and notify the hiring party
If a borrower refuses to sign, the NSA must stop the signing, note the refusal, and report it to the title company or lender.
NSA Conducting a Loan Signing 2
Before presenting documents to borrowers, what should an NSA do with the loan package?