NSA Preventing Unauthorized Practice of Law 2

Question 1

A borrower asks the NSA to explain the difference between the interest rate and the APR on their loan documents. What should the NSA do?

Accepted Answer

Decline to explain and refer the borrower to their lender

Answer

Explaining loan terms goes beyond a notary's role and constitutes the unauthorized practice of law; the NSA should refer all such questions to the lender.

Question 2

Which of the following actions is WITHIN the scope of an NSA's duties during a loan signing?

Accepted Answer

Identifying each document by its title before the borrower signs

Answer

NSAs may identify documents by name so the borrower knows what they are signing, but they must not advise on terms or legal effects.

Question 3

During a closing, a borrower says, 'I don't understand why I need to sign a Right of Rescission notice.' What is the correct NSA response?

Accepted Answer

Instruct the borrower to contact the lender or attorney for an explanation

Answer

Although the ROR is a federally mandated disclosure, interpreting its legal significance for the borrower crosses into the practice of law.

Question 4

An NSA who repeatedly provides legal advice during signings may face which consequence?

Accepted Answer

Criminal or civil liability for unauthorized practice of law

Answer

Unauthorized practice of law (UPL) is a criminal offense in most states and can result in fines, injunctions, or prosecution.

Question 5

A borrower insists the NSA tell them whether a late-payment clause is enforceable in their state. The NSA should:

Accepted Answer

Decline and suggest the borrower consult an attorney

Answer

Assessing the enforceability of a contract clause is a legal determination that only a licensed attorney should provide.

(NSA) Notary Signing Agent Certification Practice Test

(NSA) Notary Signing Agent Certification Practice Test

NSA Preventing Unauthorized Practice of Law 2