NSA Post-Signing Procedures and Compliance 3

Question 1

What is a 'cure' in the context of post-signing loan document compliance?

Accepted Answer

Correcting a minor document deficiency to allow the loan to fund

Answer

A cure is a correction made to a document error or omission—such as a missing initial—that allows the loan to proceed to funding.

Question 2

Which document gives borrowers on a primary residence refinance the right to cancel the loan within three business days?

Accepted Answer

Notice of Right to Cancel (Right of Rescission)

Answer

The Notice of Right to Cancel, required by TILA/Regulation Z, gives eligible borrowers three business days to rescind a refinance transaction.

Question 3

How many copies of the Notice of Right to Cancel must typically be provided to each borrower?

Accepted Answer

Two copies per borrower

Answer

Federal law requires lenders to provide two copies of the Notice of Right to Cancel to each eligible borrower.

Question 4

An NSA's E&O (Errors and Omissions) insurance is primarily designed to protect against:

Accepted Answer

Financial losses caused by the NSA's mistakes or omissions during the signing

Answer

E&O insurance covers the NSA if a client suffers financial harm due to the NSA's professional errors or oversights.

Question 5

After a signing, a borrower calls the NSA asking about their loan interest rate. The NSA should:

Accepted Answer

Refer the borrower to the lender or title company

Answer

NSAs must not provide legal or financial advice; all loan-specific questions should be directed to the lender or title company.

(NSA) Notary Signing Agent Certification Practice Test