ASN Certified Notary Signing Agent

A title company hires you as a Notary Signing Agent (NSA) to conduct a refinance signing. The borrower asks you to explain whether the new interest rate is a good deal compared with her old loan. What is the correct response?

• ADecline to advise, explain you may only point to where the rate is disclosed, and refer q…
• BCompare the two rates and give her your professional opinion on which is better
• CTell her the rate is fine because the lender already approved the loan
• DRefuse to proceed with the signing until she stops asking questions

During a loan signing, the borrower's adult son, who is not a party to the loan, urges you to skip notarizing the Deed of Trust because 'everyone in the family already agrees.' What duty controls your decision?

• AThe duty of obedience to the parties present at the table
• BThe duty to maximize the lender's convenience
• CThe duty of impartiality and to follow proper notarial procedure regardless of outside pr…
• DThe duty to defer to the most senior family member present

You are a Notary Signing Agent and the lender on a refinance is also your brother-in-law's company, in which you hold a small ownership interest. What is the most appropriate action?

• AProceed; an NSA's notarization is never affected by a financial interest
• BProceed and simply disclose the interest verbally to the borrower
• CProceed but charge a higher fee to offset the conflict
• DDecline the assignment or recuse yourself because a financial or beneficial interest in t…

A borrower offers you a $200 cash 'tip' to certify that she signed the documents at her home when in fact the signing is taking place at a coffee shop. How should an ethical NSA respond?

• AAccept the tip since the signing location is a minor detail
• BRefuse; recording a false location in the notarial certificate or journal is fraud and no…
• CAccept the tip but record the true location anyway
• DRecord whichever location the title company prefers

Which statement best describes the role of a Notary Signing Agent compared with an ordinary Notary Public?

• AAn NSA may draft and modify loan documents because of specialized training
• BAn NSA has authority to waive the borrower's right to cancel
• CAn NSA replaces the closing attorney and approves the loan
• DAn NSA is a Notary Public with added training to identify, present, and notarize loan-clo…

A signing service repeatedly pressures you to backdate a notarial certificate so a document appears to have been signed before a deadline that has already passed. Under notary ethics, what must you do?

• ARefuse; the notarization date must reflect the actual date the notarial act was performed
• BBackdate it because the signing service, not you, is responsible
• CPostdate it instead, which is acceptable
• DLeave the date blank so the lender can fill it in

The American Society of Notaries Certified Notary Signing Agent designation requires which of the following to take the certification exam?

• AA real estate broker's license
• BAn active Notary Public commission
• CA law degree
• DA mortgage loan originator (NMLS) number

At a signing, the borrower becomes visibly confused and tells you she does not understand what she is agreeing to and feels she is being rushed. What is the most appropriate NSA response?

• AExplain each document in detail so she understands and can finish quickly
• BTell her to sign now and ask questions later
• CStop and advise her not to sign until she gets answers, then contact the lender or title…
• DSign on her behalf to save time

Which of the following is a permissible action for a non-attorney Notary Signing Agent at a loan signing?

• AAdvising the borrower on whether to take the loan
• BNegotiating the closing costs with the borrower
• CPointing out where the APR is disclosed on the Truth-in-Lending or Closing Disclosure wit…
• DCompleting blank financial terms the lender left empty

An NSA learns that a borrower's primary language is not English and the borrower cannot read the loan documents, while the documents and the notarial certificate are in English. What is the best practice in most states?

• AProceed, because comprehension of the documents is irrelevant to a notarization
• BBe cautious: the Notary must be able to communicate directly with the signer to confirm w…
• CHave the borrower's friend translate everything and then notarize
• DRefuse to ever notarize for non-English speakers

Why is it generally improper for a Notary Signing Agent to charge the borrower a separate notary fee on top of the signing fee paid by the title company?

• ABecause the NSA's signing fee from the title company typically already covers the notariz…
• BBecause notarial acts must always be performed for free
• CBecause borrowers are legally exempt from all notary fees
• DBecause only attorneys may charge for notarial acts

A Notary Signing Agent's overarching ethical obligation when handling a borrower's loan package is best described as a duty to:

• AMaximize the number of signings completed per day
• BReport the borrower's finances to credit bureaus
• CShare interesting loan details with other notaries for training
• DSafeguard the confidentiality and security of the borrower's nonpublic personal and finan…

A lender's instructions tell you to have the borrower sign a Deed of Trust using only her initials. Your state's law requires the signature to match the notarized acknowledgment and the name on the document. What governs?

• AState notary law and proper notarial procedure control; the NSA cannot violate them to fo…
• BThe lender's instructions always override state notary law
• CThe NSA may pick whichever rule is faster
• DThe title company's preference controls

Which of the following best reflects the NSA principle of impartiality during a closing?

• AThe NSA should steer the borrower toward signing because the NSA is paid by the lender's…
• BThe NSA should advocate for the borrower since the borrower is the most vulnerable party
• CThe NSA serves as a neutral facilitator and must not act as an advocate for the lender, t…
• DThe NSA should refuse to notarize for either side to stay neutral

An NSA realizes after a signing that she forgot to affix her notary seal to an acknowledgment certificate she had completed and signed. What is the proper corrective action?

• AMail the seal impression separately for the lender to attach
• BInstruct the title company to photocopy a seal from another document
• CStamp the seal later without the signer, since she already verified identity
• DRe-notarize properly in the personal presence of the signer, affixing the seal as require…

Before notarizing the Deed of Trust, an NSA must satisfy which core notarial requirement regarding the signer?

• AThat the signer has good credit
• BThat the signer personally appears before the Notary and is properly identified
• CThat the signer has read every page aloud
• DThat the signer has an attorney present

A borrower presents a driver's license that expired four months ago as identification for the notarization. In most states, what should the NSA do?

• AAccept it because it once was valid
• BAccept it because driver's licenses never truly expire for ID purposes
• CAccept it if the photo still looks like the borrower
• DTreat it as generally unacceptable and ask for a current, unexpired government-issued ID…

A signer has no acceptable photo ID. The Notary does not personally know the signer. Which alternative identification method is permitted in many states?

• AUsing one or more credible identifying witnesses who personally know the signer and swear…
• BAccepting the word of the loan officer over the phone
• CAccepting a printed photo of the signer's ID emailed by the title company
• DProceeding without identification because the signing is time-sensitive

What is the primary purpose of a Notary's journal (record book) entry for a loan-signing notarization?

• ATo calculate the borrower's monthly payment
• BTo create a permanent, chronological record of the notarial act that can be used to verif…
• CTo replace the need for a notarial certificate on the document
• DTo advertise the Notary's services

While completing your journal at a kitchen-table signing, another household member leans over to read the prior completed entries from an earlier client. What does best practice require?

• AAllow it, since journal entries are public anyway
• BTear out the prior pages to be safe
• CTake reasonable steps to prevent others from viewing completed entries, protecting earlie…
• DRead the prior entries aloud so nothing is hidden

Which set of details is typically recorded in a Notary's journal for each notarial act at a loan signing?

• AThe borrower's credit score and debt-to-income ratio
• BThe lender's profit margin on the loan
• CThe date and time, type of notarial act, type of document, signer's name and signature, a…
• DThe NSA's marketing leads for the month

On the Deed of Trust the borrower's name appears as 'Jonathan A. Smith,' but his driver's license reads 'Jon Smith' and the title company instructs that he sign exactly as typed. How should the NSA handle identification and signature?

• ARefuse the signing entirely because the names do not match
• BConfirm identity using the ID and follow state ID rules and lender signature instructions…
• CHave him sign 'Jon Smith' to match the license and ignore the document
• DNotarize using the name on the license regardless of the document

Some lenders require the NSA to complete a 'notarial evidence' or 'signing affidavit' form. What information does this form typically capture?

• AThe Notary's name, commission number and expiration, the signers and how they were identi…
• BThe borrower's future appraisal value
• CThe Notary's personal banking information
• DThe realtor's commission split

A co-borrower spouse is not physically present at the signing, but the title company asks the NSA to notarize the Deed of Trust for both spouses anyway. What must the NSA do?

• ANotarize for both because they are married
• BSkip notarization for both spouses
• CHave the present spouse sign the absent spouse's name
• DNotarize only for the signer who is personally present and properly identified; the absen…

Why is verifying the spelling and exact form of the borrower's name important before beginning the loan-document signing?

• ALenders require signatures to match the documents and notarial certificate, and a mismatc…
• BIt determines the borrower's interest rate
• CIt changes the loan's APR
• DIt is required only for the appraisal

An NSA receives a refinance loan package. Which document in the package generally must be notarized so that it can be recorded with the county?

• AThe promissory note
• BThe Closing Disclosure
• CThe Deed of Trust (or Mortgage)
• DThe Truth-in-Lending APR worksheet

Many experienced signing agents begin a loan signing by having the borrower review and sign the Closing Disclosure early in the package. What is the main reason for this practice?

• ABecause the Closing Disclosure must be notarized first
• BBecause the Closing Disclosure replaces the promissory note
• CBecause the lender requires the Closing Disclosure to be the last document
• DBecause the Closing Disclosure summarizes the key loan terms and figures, so any borrower…

During a signing, the NSA notices the borrower skipped an initial line on the Closing Disclosure. What is the appropriate action?

• AInitial it for the borrower to save time
• BDirect the borrower to the missed initial line and have the borrower complete it
• CLeave it blank and let the lender fix it
• DWhite out the surrounding text so the line is not needed

What is the NSA's responsibility regarding the date that borrowers write next to their signatures on loan documents?

• AThe NSA should write all the dates to keep them consistent
• BThe NSA may use any date the lender prefers
• CDates are optional and can be left blank
• DThe NSA should ensure borrowers date the documents with the actual signing date as instru…

Which of the following best describes the NSA's task with the loan package overall?

• APresent the documents to the borrower, ensure all required signatures, initials, and nota…
• BUnderwrite and approve the loan at the table
• CNegotiate the final interest rate
• DDecide which documents the borrower has to sign

After completing a signing, the NSA must return the executed loan package. What is the best practice for handling and shipping it?

• ALeave it in an unlocked car overnight before mailing
• BInspect for completeness, keep the documents secure and confidential, and ship promptly u…
• CEmail scans of every page to the borrower's friends
• DDrop the package in any unsecured public bin

A borrower wants to sign the documents out of the order the NSA planned, starting with the promissory note. Is this permissible?

• ANo, documents must be signed in a strict legally mandated sequence
• BNo, the Deed of Trust must always be signed first
• CGenerally yes; while NSAs use an efficient order, there is usually no legal requirement f…
• DOnly if the lender's attorney is present

The NSA finds that the loan package is missing the Notice of Right to Cancel on a refinance of the borrower's primary residence. What is the best action?

• AProceed and tell the borrower the notice is unnecessary
• BDraft a substitute Right to Cancel notice yourself
• CContact the title company or lender before completing the signing, because the Right to C…
• DHave the borrower waive the right verbally

Which document set does an NSA typically guide a borrower through verifying first because it reflects the most important financial terms of the loan?

• AThe flood and tax authorization forms
• BThe Closing Disclosure and the note's key terms (loan amount, rate, payment, costs)
• CThe borrower's signature affidavit
• DThe compliance agreement

What is the purpose of the 'Signature/Name Affidavit' (a.k.a. statement) commonly found in a loan package?

• ATo confirm that variations of the borrower's name appearing in the file all refer to the…
• BTo set the loan's interest rate
• CTo authorize the NSA to give legal advice
• DTo waive the borrower's right to cancel

Which statement about the promissory note in a loan signing is correct?

• AIt must be notarized and recorded with the county
• BIt is the same document as the Deed of Trust
• CIt is optional and rarely included
• DIt is the borrower's written promise to repay the debt on the stated terms and is signed…

What does a Deed of Trust accomplish, and how does it differ from a mortgage?

• AIt secures the loan with the property as collateral by conveying title to a trustee; a mo…
• BIt is a tax form; a mortgage is an insurance policy
• CIt transfers ownership to the lender outright
• DIt is identical to the promissory note

Under the TILA-RESPA Integrated Disclosure (TRID) rules, the Closing Disclosure must generally be provided to the borrower at least how long before consummation of the loan?

• A1 business day before
• B10 calendar days before
• C3 business days before
• DThere is no advance-delivery requirement

The Closing Disclosure replaced which older documents when TRID took effect?

• AThe promissory note and the Deed of Trust
• BThe Notice of Right to Cancel and the compliance agreement
• CThe appraisal and the title commitment
• DThe HUD-1 Settlement Statement and the final Truth-in-Lending (TIL) disclosure

On a refinance of the borrower's principal dwelling, the Notice of Right to Cancel gives the borrower the right to rescind until midnight of which day?

• AThe day of signing
• BThe third business day following consummation, delivery of the notice, or delivery of all…
• CThe seventh calendar day after signing
• DThere is no cancellation right on any mortgage

Which transaction generally does NOT carry a three-business-day right of rescission under Regulation Z?

• AA refinance with a new lender on the borrower's primary residence
• BA refinance that increases the loan amount on the primary residence
• CA home equity line of credit on the primary residence
• DA purchase-money mortgage used to buy the borrower's primary residence

What does the Annual Percentage Rate (APR) disclosed in the loan documents represent, in contrast to the note interest rate?

• AIt reflects the cost of credit as a yearly rate including the interest rate plus certain…
• BIt is always identical to the note interest rate
• CIt is the monthly payment amount
• DIt is the property tax rate

A borrower asks the NSA, 'Does my new loan have a prepayment penalty?' Which response is proper?

• ATell the borrower there is definitely no penalty
• BPoint to the section of the note or Closing Disclosure where any prepayment penalty would…
• CEstimate the penalty for the borrower
• DAdvise the borrower to refuse to sign if there is a penalty

Which document in a loan package typically authorizes the lender or settlement agent to correct clerical or typographical errors after closing?

• AThe promissory note
• BThe Closing Disclosure
• CThe compliance agreement (errors and omissions / correction agreement)
• DThe Notice of Right to Cancel