NSA Ethics and Best Practices 2

Question 1

A borrower asks the NSA to hold onto a signed but undated document until the rescission period expires before dating it. What should the NSA do?

Accepted Answer

Refuse, as backdating or forward-dating documents is fraudulent

Answer

Date it when the rescission period ends as requested

Answer

Ask the lender's instructions before complying

Answer

Date it with today's date and note the borrower's request

Question 2

During a signing, the NSA discovers the borrower's name on the documents is spelled differently than on their government-issued ID. What is the correct action?

Accepted Answer

Contact the title company or lender to resolve the discrepancy before completing the signing

Answer

Proceed since minor discrepancies are common

Answer

Correct the spelling on the documents yourself

Answer

Ask the borrower to initial next to the correct spelling

Question 3

Which behavior best demonstrates an NSA's commitment to impartiality?

Accepted Answer

Witnessing signatures without advising the signer on whether to sign

Answer

Recommending the borrower accept the loan terms because they seem fair

Answer

Translating loan documents into the borrower's native language to ensure understanding

Answer

Suggesting the borrower negotiate a lower interest rate before signing

Question 4

An NSA is offered a $100 tip by a grateful borrower after a smooth signing. What is the most ethical response?

Accepted Answer

Decline and explain that tips could create the appearance of a conflict of interest

Answer

Accept it as a personal gift unrelated to the notarial act

Answer

Accept only if it does not exceed the state's maximum notary fee

Answer

Accept it but report it on the signing confirmation

Question 5

A borrower reveals during a signing that they are under significant financial pressure and feel forced to sign. How should the NSA respond?

Accepted Answer

Stop the signing, inform the borrower they may choose not to sign, and notify the hiring party

Answer

Remind them that locking in the rate now is the best choice

Answer

Note the concern in a personal log and continue the signing

Answer

Advise them to call their attorney after the signing is complete

Question 6

What is the primary reason an NSA should never provide legal advice about loan documents?

Accepted Answer

It is outside the scope of notarial duties and constitutes unauthorized practice of law

Answer

Borrowers rarely understand legal terminology anyway

Answer

The lender is the only party authorized to explain loan terms

Answer

NSA certification does not include a legal knowledge component

Question 7

An NSA realizes after leaving a signing that one required notarial certificate was not completed. What should they do?

Accepted Answer

Immediately notify the title company or lender so they can arrange a cure

Answer

Return to the borrower's home and complete it without telling the hiring party

Answer

Complete the certificate from memory and mail it in

Answer

Wait to see if the lender notices before taking action