NSA - Notary Signing Agent Conducting a Loan Signing Questions and Answers

Question 1

During a loan signing, the borrower asks for your opinion on their interest rate. According to the Notary Signing Agent Code of Conduct, what is the appropriate response?

Accepted Answer

Explain that you are prohibited from offering any personal or financial advice and should refer them to their loan officer.

Answer

Guiding Principle 4 of the NSA Code of Conduct explicitly states that a signing agent must not provide legal, personal, or financial advice. Offering an opinion on an interest rate falls under this prohibition. The correct action is to decline to answer, state your role's limitations, and direct the borrower to the appropriate professional, such as their loan officer.

Question 2

You are preparing for a signing appointment and notice the date on the Deed of Trust is four days in the future. What is the correct course of action?

Accepted Answer

Immediately contact the contracting company to report the post-dated document and ask for instructions.

Answer

Signing post-dated documents, especially key ones like a Deed of Trust or Note, is a serious error. The signing agent must never proceed with a signing if critical documents are dated in the future. The proper protocol is to halt the process and immediately contact the hiring party (lender, title company, or signing service) for guidance on how to resolve the discrepancy before meeting with the signer.

Question 3

Which of the following is a primary responsibility of the Notary Signing Agent when presenting the USA PATRIOT Act Form to a borrower?

Accepted Answer

Accurately record the details from the borrower's identification documents onto the form.

Answer

The purpose of the USA PATRIOT Act Form in a loan package is for the lender to verify the identity of the borrower to prevent illegal financial activities. The Notary Signing Agent's role is to act as the lender's representative to properly identify the borrower and accurately transcribe the identification information (type of ID, ID number, expiration date, etc.) onto the form. This form is typically not notarized.

Question 4

A borrower is hesitant to sign the Deed of Trust because they don't understand its purpose. As the Notary Signing Agent, how should you proceed?

Accepted Answer

State, "This is the Deed of Trust; it secures the loan with the property as collateral," and point to the signature line.

Answer

A Notary Signing Agent can describe a document but cannot explain its legal implications or provide advice. The best practice is to state the document's title and its general purpose in neutral terms, then direct the signer to the place for their signature. This approach avoids the unauthorized practice of law while still guiding the signing process. If the borrower still has questions, the NSA should then offer to contact the loan officer.

Question 5

After completing a loan signing, you are reviewing the documents before leaving the table. Which of the following potential errors should be your highest priority to check for and correct?

Accepted Answer

A missing signature or incorrect date on the Notice of Right to Cancel.

Answer

The Notice of Right to Cancel (RTC) is a time-sensitive and critical document in refinance transactions. An error in the signature or, most importantly, the date, can invalidate the rescission period, causing significant funding delays and legal issues. While all errors should be avoided, a mistake on the RTC is one of the most consequential.

(NSA) Notary Signing Agent Certification Practice Test

(NSA) Notary Signing Agent Certification Practice Test

NSA - Notary Signing Agent Conducting a Loan Signing Questions and Answers