NSA Loan Documents and Procedures 3

Question 1

Before beginning a loan signing appointment, what is the first thing an NSA should verify about the borrower?

Accepted Answer

Their identity using a current government-issued photo ID

Answer

Verifying the signer's identity with a valid, government-issued photo ID is the NSA's primary duty before any documents are signed.

Question 2

An NSA arrives at a signing and the borrower says they need to make a correction to a dollar amount on the Closing Disclosure. What should the NSA do?

Accepted Answer

Contact the lender or signing service for instruction before altering any document

Answer

NSAs must never alter loan documents on their own; any corrections require authorization from the lender or title/escrow company.

Question 3

What does it mean when a loan package is described as 'dry funding'?

Accepted Answer

Funds are disbursed only after documents are reviewed and approved post-closing

Answer

In a dry funding state, the lender reviews signed documents before releasing funds, meaning money is not available on the day of signing.

Question 4

Which of the following best describes a 'wet funding' closing?

Accepted Answer

Funds are disbursed on the same day documents are signed

Answer

In wet funding states, loan funds are disbursed on the same day the loan documents are signed and notarized.

Question 5

What should an NSA do if a borrower refuses to sign the Right of Rescission notice?

Accepted Answer

Explain its purpose and contact the lender or signing service for guidance

Answer

The NSA should explain the document's purpose and immediately notify the lender or signing service, as the rescission notice is legally required.

(NSA) Notary Signing Agent Certification Practice Test

(NSA) Notary Signing Agent Certification Practice Test

NSA Loan Documents and Procedures 3