NSA Conducting a Loan Signing — 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.

Question 8: After completing a loan signing, how should the NSA return the signed loan package?

Mail it via standard US postal service
Deliver it per the hiring party's specific instructions (e.g., overnight courier) (Correct answer)
Scan and email it to the borrower
Keep it until the lender contacts them

Correct answer: Deliver it per the hiring party's specific instructions (e.g., overnight courier)

NSAs must return the completed package as directed by the hiring party, which usually requires a specific delivery method such as overnight courier.

Question 9: What does the term 'wet signature' mean in the context of a loan signing?

A signature made using a blue ink pen specifically
An original handwritten signature on a physical document (Correct answer)
A signature witnessed by two witnesses
An electronic signature captured on a tablet

Correct answer: An original handwritten signature on a physical document

A wet signature refers to an original, handwritten signature on a physical document, distinguishing it from an electronic signature.

Question 10: During a loan signing, the borrower's spouse is present but is not listed as a borrower. Under what circumstance might the spouse still need to sign?

Whenever the spouse is present at the table
If the property is in a community property state and the spouse has an ownership interest (Correct answer)
Only if the lender specifically requires two signatures
The spouse never needs to sign if not a co-borrower

Correct answer: If the property is in a community property state and the spouse has an ownership interest

In community property states, a non-borrower spouse may need to sign the Deed of Trust to relinquish their interest in the property.

Question 11: An NSA is asked to notarize a document where the acknowledgment wording is missing. What should the NSA do?

Write in their own acknowledgment wording from memory
Attach a loose certificate with the proper acknowledgment wording (Correct answer)
Skip notarizing that document and proceed
Ask the borrower to write in the wording

Correct answer: Attach a loose certificate with the proper acknowledgment wording

NSAs may attach a loose notarial certificate with the correct wording when the document lacks a pre-printed acknowledgment or jurat.

Question 12: What is a 'funding number' or 'loan number' and why must the NSA ensure it appears correctly on documents?

It is the NSA's commission tracking number and is for internal use only
It is the unique identifier for the loan that ensures all documents are tied to the correct file (Correct answer)
It is the borrower's credit score identifier
It is the title company's internal billing reference

Correct answer: It is the unique identifier for the loan that ensures all documents are tied to the correct file

The loan number uniquely identifies the transaction and must be consistent across all documents to ensure the package is processed correctly.

Question 13: When an NSA completes the notarial certificate on a document, what information must they typically include?

The borrower's credit score and loan amount
Their commission expiration date, signature, stamp/seal, and the venue (state/county) (Correct answer)
The lender's name and the loan origination date
The title company's name and escrow number

Correct answer: Their commission expiration date, signature, stamp/seal, and the venue (state/county)

A notarial certificate must include the venue (state and county), the NSA's official signature, and their notary stamp or seal, plus the commission expiration date where required.

Question 14: What is the purpose of the 'Compliance Agreement' found in many loan packages?

It confirms the borrower's compliance with credit regulations
It obligates the borrower to cooperate in correcting minor errors or re-signing documents if needed (Correct answer)
It authorizes the lender to run additional credit checks post-closing
It states the borrower complies with local zoning laws

Correct answer: It obligates the borrower to cooperate in correcting minor errors or re-signing documents if needed

The Compliance Agreement is a borrower's promise to cooperate with the lender if minor clerical errors need to be corrected after closing.

Question 15: An NSA arrives at a signing and discovers the loan package is missing the Closing Disclosure. What should they do?

Proceed with the signing using the other documents
Contact the hiring party immediately and await instructions (Correct answer)
Ask the borrower to print a copy from their email
Reconstruct the document from memory or a template

Correct answer: Contact the hiring party immediately and await instructions

A missing required document must be reported to the hiring party immediately; the NSA should not proceed without all required documents.

Question 16: Which scenario most accurately represents a 'table-funded' loan signing?

The borrower funds the loan themselves at closing
The lender provides funds to the title company at the closing table, allowing disbursement at signing (Correct answer)
The NSA funds the gap between escrow and the loan amount
The real estate agent provides temporary funding at closing

Correct answer: The lender provides funds to the title company at the closing table, allowing disbursement at signing

In a table-funded closing, the lender wires funds to the title company so that disbursement occurs simultaneously with signing.

Question 17: What does it mean when a notary uses a 'jurat' instead of an 'acknowledgment'?

The signer declares the document is their free and voluntary act
The signer swears or affirms that the document's contents are true, typically in person (Correct answer)
The notary certifies a copy of the document is accurate
The notary witnesses the borrower receive the loan funds

Correct answer: The signer swears or affirms that the document's contents are true, typically in person

A jurat requires the signer to swear or affirm under oath that the document's contents are true, whereas an acknowledgment only verifies the signature.

Question 18: If a borrower is signing as an attorney-in-fact (under a Power of Attorney), how should the signature line typically read?

Only the attorney-in-fact's name, with no reference to the principal
The principal's name, followed by the attorney-in-fact's name and 'Attorney-in-Fact' (Correct answer)
The attorney-in-fact's name followed by 'on behalf of' the principal's initials
The lender's name and the attorney-in-fact's name together

Correct answer: The principal's name, followed by the attorney-in-fact's name and 'Attorney-in-Fact'

When signing under a Power of Attorney, the signature typically reads '[Principal Name], by [Attorney-in-Fact Name], Attorney-in-Fact' to reflect the representative capacity.

Question 19: How many copies of the Notice of Right to Cancel must typically be provided to each borrower on a refinance?

One copy to share between all borrowers
Two copies per borrower (plus one executed copy) (Correct answer)
A single copy for the entire transaction file
Three copies per borrower and one for the lender

Correct answer: Two copies per borrower (plus one executed copy)

Under TILA/Regulation Z, each borrower with a right to rescind must receive two copies of the Notice of Right to Cancel, plus one completed copy.

Question 20: An NSA discovers after leaving the signing that a borrower did not sign one page of the Deed of Trust. What is the appropriate next step?

Sign the page themselves to complete the package
Notify the hiring party immediately and follow their instructions for a cure (Correct answer)
White-out the signature line and resubmit the document
Return the entire package without notifying anyone

Correct answer: Notify the hiring party immediately and follow their instructions for a cure

The NSA must notify the hiring party immediately; the lender or title company will determine whether a corrective signing or other cure is needed.

Question 21: What is the primary reason an NSA should never photocopy a borrower's identification document without explicit authorization?

Photocopying IDs is illegal under all state laws
It may violate privacy laws and the borrower's rights regarding personal data (Correct answer)
The copy quality is insufficient for lender verification
Only the title company is authorized to photocopy IDs

Correct answer: It may violate privacy laws and the borrower's rights regarding personal data

Copying identification documents without consent can violate privacy laws and expose the NSA to liability; authorization from the borrower and hiring party is required.

NSA Conducting a Loan Signing

Before presenting documents to borrowers, what should an NSA do with the loan package?

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