NSA Legal & Ethical Standards 2

Question 1

A borrower asks the NSA to notarize a document without the borrower being physically present. What must the NSA do?

Accepted Answer

Refuse unless the state specifically authorizes Remote Online Notarization (RON)

Answer

Traditional notarization requires personal appearance; RON is only permitted in states that have enacted enabling legislation.

Question 2

Which federal law most directly governs the handling of nonpublic personal information obtained during a loan closing?

Accepted Answer

Gramm-Leach-Bliley Act (GLBA)

Answer

The Gramm-Leach-Bliley Act requires financial institutions—and service providers like NSAs—to protect consumers' nonpublic personal information.

Question 3

An NSA discovers mid-signing that the loan APR disclosed in the Truth-in-Lending statement differs from the rate the borrower expected. The NSA should:

Accepted Answer

Stop the signing and contact the lender or title company for guidance

Answer

An NSA must not alter documents; when a material discrepancy is found, the proper step is to halt and notify the responsible party.

Question 4

Under the NNA Code of Professional Responsibility, an NSA must avoid any action that creates a conflict of interest. Which scenario represents a conflict of interest?

Accepted Answer

Owning stock in the lender whose loans you close

Answer

Owning a financial stake in a lender creates a direct conflict because the NSA could benefit from completing the signing regardless of borrower concerns.

Question 5

A borrower who is deaf requests that a family member interpret during the notarization. The NSA should:

Accepted Answer

Allow it and note the interpreter's presence in the journal

Answer

An NSA may allow a voluntary interpreter while recording the interpreter's presence in the notarial journal to document the circumstances.

(NSA) Notary Signing Agent Certification Practice Test

(NSA) Notary Signing Agent Certification Practice Test

NSA Legal & Ethical Standards 2