4.1 Loan Package Structure & Overview

What Is a Loan Package?

A loan package is the set of documents a borrower signs at a loan closing. It typically includes the loan agreement, the security instrument, federal and state disclosures, escrow documents, and a variety of affidavits and addenda. The Notary Signing Agent (NSA) receives the package from the title or signing company, prepares it before the signing appointment, presents each document to the borrower at the table, notarizes the documents that require it, and returns the completed package.

Under the Signing Professionals Workgroup (SPW) Guiding Principles, the NSA presents and notarizes documents but does NOT explain loan terms. SPW Principle 4 draws a bright line: the NSA may identify a document and point to where the borrower signs, but interpreting interest rates, prepayment penalties, or legal consequences is the job of the lender or an attorney. If a borrower asks "Is this rate correct?" or "What does this clause mean?", the correct NSA response is to direct them to their lender or the document's preparer.

Major Document Categories

Every loan package can be sorted into four functional buckets. Organizing the package this way before the signing makes the appointment faster and reduces errors.

1. Borrower-Authored Contracts

These are promises the borrower makes to the lender. The borrower must sign them, but they are generally not notarized because they are contracts, not sworn statements or instruments of record.

• Promissory Note — the borrower's promise to repay
• Compliance Agreement — borrower agrees to comply with closing instructions
• IRS W-9 / 4506-T — tax identity and verification forms

2. Lender/Title-Authored Security Instruments

These give the lender a lien on the property and are recorded in county land records, so they must be notarized.

• Deed of Trust or Mortgage — the security instrument
• Subordination Agreements, if applicable

3. Notarized Affidavits & Sworn Statements

Sworn documents that the borrower signs in front of the NSA, typically requiring a jurat ("subscribed and sworn to before me").

• Name Affidavit / Signature Affidavit — confirms identity and name variations
• Occupancy Affidavit — borrower swears they will occupy the property
• Identity Affidavit — confirms the borrower's identity

4. Informational Disclosures & Receipts

Documents the borrower signs to acknowledge receipt or understanding. Not notarized.

• Closing Disclosure (CD) or HUD-1 Settlement Statement
• Right to Cancel (Rescission Notice)
• Initial Escrow Disclosure, Transfer of Servicing Disclosure
• E-SIGN consent, Authorization for automatic payments

The NSA's Pre-Signing Prep (Lesson 3 — Prep the Package)

Before the borrower arrives, the NSA's job is to prepare the package. This is Lesson 3 of the NSA certification curriculum and is where most signing errors are prevented.

1. Print the package in the order the signing company specifies (often the "stack order" given in the signing instructions).
2. Review the signing instructions — flag any special requests, scan-backs, or fax-back requirements.
3. Highlight signature and notary tabs so the borrower can sign quickly and the NSA can apply the correct notarial act.
4. Verify borrower name spelling consistency across the Note, Deed of Trust, CD, and affidavits. A name mismatch (e.g., "Robert J. Smith" on the Note but "Bob Smith" on the Deed) is a common cause of recording rejections.
5. Flag missing pages or discrepancies — blank pages, missing riders, wrong loan number, or a cash-to-close figure that doesn't match the CD.
6. Prepare the rescission dates if the loan is a refinance subject to the 3-day right of rescission.

Key distinction: The NSA prepares and presents but does not explain. Preparation is mechanical and organizational; explanation is prohibited.

Common Preparation Errors to Avoid

Most signing defects are created at the prep stage, not the table. Watch for:

• Wrong stack order. Signing companies specify an order for a reason (often to walk the borrower from least-sensitive disclosures to the Note and security instrument). Reordering it can confuse the borrower and break the lender's checklist.
• Missing scan-back or fax-back requirements. Some lenders require the NSA to scan and email signed documents before leaving the signing. If you miss this, funding can be delayed by a day.
• Forgotten riders. A loan file that references an ARM but has no Adjustable Rate Rider is incomplete; flag it before the borrower arrives.
• Unprepared notary blocks. If the acknowledgment is pre-printed with another state's venue, or the notary commission expiration is left blank, the recorder will reject it. Pre-fill the venue and confirm your stamp matches the property's state.
• Incorrect rescission calendar. For a refinance, miscalculating the rescission expiration by one day can void the transaction. Count carefully: three business days from consummation, excluding Sundays and federal holidays.

A well-prepared package makes the signing take 30-40 minutes instead of 90, and it dramatically reduces post-closing corrections.

Document Notarization Quick Reference