NSA Legal & Ethical Standards 4

Question 1

An NSA's notarial journal is subpoenaed in a fraud investigation. The NSA should:

Accepted Answer

Comply with the subpoena and provide the journal as required by law

Answer

A subpoena is a lawful court order; the NSA must comply and produce the journal, as destruction would constitute obstruction of justice.

Question 2

Which of the following is an example of an NSA exceeding their authorized scope?

Accepted Answer

Explaining to the borrower that the prepayment penalty clause means they could owe a fee if they pay off the loan early

Answer

Explaining the legal effect or financial implication of a clause is legal advice and is outside the NSA's authorized scope.

Question 3

A borrower has a cognitive impairment and does not appear to understand the documents. The NSA should:

Accepted Answer

Halt the signing and report concerns to the title company or lender

Answer

A signer must be competent and willing; if the NSA doubts competency, they must stop and escalate rather than proceed.

Question 4

Which action by an NSA could constitute wire fraud?

Accepted Answer

Falsifying a notarial certificate that is then transmitted electronically to the lender

Answer

Transmitting a false notarial certificate electronically as part of a scheme to defraud can constitute wire fraud under 18 U.S.C. § 1343.

Question 5

An NSA is presented with a Power of Attorney (POA) allowing one person to sign on another's behalf. The NSA should verify that the POA:

Accepted Answer

Is valid, specifically authorizes the transaction type, and has not been revoked

Answer

Before accepting a POA, the NSA must confirm it is current, duly executed, covers the specific transaction, and has not been revoked.

(NSA) Notary Signing Agent Certification Practice Test