NSA Key Mortgage Closing Documents 2

Question 1

What does the Closing Disclosure replace under the TRID rule effective October 2015?

Accepted Answer

The HUD-1 Settlement Statement and final Truth in Lending disclosure

Answer

TRID combined the HUD-1 and final TIL into the Closing Disclosure for most residential mortgage loans.

Question 2

On the Closing Disclosure, which page contains the loan terms summary including loan amount, interest rate, and monthly principal & interest?

Accepted Answer

Page 1

Answer

Page 1 of the Closing Disclosure contains the loan terms table with the key financial figures borrowers must review.

Question 3

How many business days before consummation must a borrower receive the Closing Disclosure under TRID?

Accepted Answer

3 business days

Answer

TRID requires the lender to provide the Closing Disclosure at least 3 business days before loan consummation.

Question 4

The Promissory Note is primarily a(n):

Accepted Answer

Personal promise by the borrower to repay the debt

Answer

The Promissory Note is the borrower's written promise to repay the loan under stated terms, making it a personal debt obligation.

Question 5

Which party signs the Promissory Note but typically does NOT sign the Deed of Trust on a purchase transaction?

Accepted Answer

A non-titled borrower who is financially obligated but not on title

Answer

A non-titled borrower signs the Note to be financially responsible for the debt but does not sign the Deed of Trust because they have no ownership interest in the property.

(NSA) Notary Signing Agent Certification Practice Test

(NSA) Notary Signing Agent Certification Practice Test

NSA Key Mortgage Closing Documents 2