NSA Notarial Procedures 3 — Questions and Answers
Question 1: The Closing Disclosure (CD) must be provided to the borrower at least how many business days before loan consummation?
- 1 business day
- 2 business days
- 3 business days (Correct answer)
- 5 business days
Correct answer: 3 business days
Under TRID rules (RESPA/TILA), the Closing Disclosure must be delivered at least 3 business days before closing.
Question 2: When a notary performs a copy certification, they are certifying that:
- The original document is authentic and valid
- The copy is a true and accurate reproduction of the original document (Correct answer)
- The signer created the original document
- The document complies with applicable laws
Correct answer: The copy is a true and accurate reproduction of the original document
A copy certification attests that a photocopy is an accurate reproduction of an original document the notary has personally compared.
Question 3: If a borrower refuses to sign the Notice of Right to Cancel, the notary should:
- Sign the document on the borrower's behalf to complete the closing
- Note the refusal in the journal, do not notarize, and report to the signing company (Correct answer)
- Complete the notarization without the borrower's signature on that document
- Advise the borrower they will lose their loan if they do not sign
Correct answer: Note the refusal in the journal, do not notarize, and report to the signing company
The notary should document the refusal, decline to notarize, and report the situation to the hiring company — never pressure or sign for a signer.
Question 4: Which act describes the notary's responsibility to verify the identity of all parties signing a loan document?
- Gramm-Leach-Bliley Act
- USA PATRIOT Act (Correct answer)
- RESPA
- TILA
Correct answer: USA PATRIOT Act
The USA PATRIOT Act imposes identity verification requirements to prevent money laundering and fraud in financial transactions, affecting notarial practices.
Question 5: A notary seal impression that is smudged and illegible should be:
- Left as-is since the notary signature is what matters legally
- Re-stamped directly over the smudged impression
- Corrected by placing a new impression nearby on the same document (Correct answer)
- Reported to the state as a defective instrument
Correct answer: Corrected by placing a new impression nearby on the same document
If the initial seal impression is unreadable, the notary should apply a clear, legible impression in a nearby space on the same document.
Question 6: Which type of notarial act is most commonly required for a Deed of Trust or Mortgage in a real estate closing?
- Jurat
- Acknowledgment (Correct answer)
- Copy certification
- Oath administration
Correct answer: Acknowledgment
An acknowledgment is the most common notarial act for real estate documents, where the signer confirms voluntary execution of the instrument.
Question 7: What should a notary do if the signer's name on the document differs slightly from the name on the ID (e.g., 'Robert' vs. 'Bob')?
- Notarize using the name as printed on the document only (Correct answer)
- Refuse to notarize until the document name exactly matches the ID
- Sign the notarial certificate using the name on the ID and note any discrepancy
- Ask the signer to change their name on the ID before proceeding
Correct answer: Notarize using the name as printed on the document only
The notary should notarize using the name as it appears in the document, provided identity is sufficiently established, noting any discrepancy in the journal.
NSA Notarial Procedures 3
The Closing Disclosure (CD) must be provided to the borrower at least how many business days before loan consummation?