NSA Conducting a Loan Signing 3

Question 1

On a refinance transaction, which document gives the borrower the right to cancel within three business days?

Accepted Answer

Notice of Right to Cancel (NORTC)

Answer

The Notice of Right to Cancel (under TILA/Regulation Z) gives borrowers on refinance transactions three business days to rescind.

Question 2

Why is it important for the NSA to verify that the borrower's name on the ID matches the name on the loan documents?

Accepted Answer

To ensure the correct person is signing the legally binding documents

Answer

Verifying ID against document names ensures the right party is executing the loan, preventing fraud and ensuring legal validity.

Question 3

When should the NSA present the Promissory Note to the borrower?

Accepted Answer

After all other documents have been signed

Answer

Many NSA best practices suggest presenting the Note near the end, but it must be signed; sequencing may follow the lender's or title company's instructions.

Question 4

The Deed of Trust (or Mortgage) in a loan package primarily serves to:

Accepted Answer

Pledge the property as collateral for the loan

Answer

The Deed of Trust pledges the property as security for the loan, giving the lender a lien if the borrower defaults.

Question 5

An NSA notices a blank space where a date should be filled in on a document. What is the correct action?

Accepted Answer

Contact the hiring party to determine the correct date

Answer

NSAs should not fill in dates without authorization; they must contact the hiring party for the correct information.

(NSA) Notary Signing Agent Certification Practice Test

(NSA) Notary Signing Agent Certification Practice Test

NSA Conducting a Loan Signing 3