NSA Key Mortgage Closing Documents 4

Question 1

A borrower asks the NSA to explain whether the interest rate on the Closing Disclosure is locked. The NSA should:

Accepted Answer

Decline to explain and refer the borrower to the lender

Answer

NSAs are prohibited from explaining or interpreting document terms; they must refer all substantive questions to the lender or settlement agent.

Question 2

The 4506-C form signed at closing authorizes the IRS to:

Accepted Answer

Release tax transcripts to the lender for income verification

Answer

IRS Form 4506-C (Request for Transcript of Tax Return) allows the lender to verify the borrower's income directly with the IRS.

Question 3

A Signature/Name Affidavit is used at closing primarily to:

Accepted Answer

Resolve discrepancies between name variations appearing on closing documents

Answer

The Name Affidavit allows the borrower to declare under oath that various name forms (e.g., 'Robert J. Smith' and 'Bob Smith') all refer to the same person.

Question 4

The Borrower's Certification and Authorization form typically allows the lender to do all of the following EXCEPT:

Accepted Answer

Sell the loan to investors without further notice

Answer

Selling the loan on the secondary market is covered by the Transfer of Servicing Disclosure, not the Borrower's Certification and Authorization.

Question 5

On a purchase transaction, which document legally conveys the real property from seller to buyer?

Accepted Answer

The Warranty Deed or Grant Deed

Answer

The Warranty Deed (or Grant Deed in some states) transfers actual ownership of the property from seller to buyer and is recorded in public records.

(NSA) Notary Signing Agent Certification Practice Test

(NSA) Notary Signing Agent Certification Practice Test

NSA Key Mortgage Closing Documents 4