NSA Conducting a Loan Signing 2

Question 1

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

Accepted Answer

Review the package to ensure it is complete and in order

Answer

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:

Accepted Answer

Refer the borrower to the lender or loan officer for clarification

Answer

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?

Accepted Answer

Truth-in-Lending Disclosure (TIL/TILA)

Answer

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?

Accepted Answer

Remind the borrower to initial each required page before proceeding

Answer

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?

Accepted Answer

Contact the hiring party for instructions before proceeding

Answer

Name discrepancies must be reported to the hiring party (title company or lender) for guidance before the signing continues.

(NSA) Notary Signing Agent Certification Practice Test