4.6 Riders, Addenda & Secondary Documents

Riders That Modify the Security Instrument or Note

A rider is an attachment to the Deed of Trust, Mortgage, or Note that adds or modifies terms for a specific loan feature. Riders travel with the security instrument and are usually recorded alongside it. The NSA presents each rider, points to the signature line, and notarizes only if the rider's signature block requires it (most recorded riders do).

Common Riders

• Adjustable Rate Rider — pairs with an ARM Note; spells out the index, margin, adjustment schedule, and rate caps.
• Balloon Rider — pairs with a Balloon Note; states the balloon date and maturity.
• Condominium Rider — modifies the security instrument to address condo-specific provisions (HOA liens, common areas).
• Planned Unit Development (PUD) Rider — addresses PUD-specific provisions (common amenities, HOA assessments).
• Second Home Rider — restricts use to a second home; affects occupancy and rental restrictions.
• 1-4 Family Rider — applies when the property is a 1-4 unit residential property; addresses multi-unit occupancy.
• VA Rider / PMI Rider — addresses VA loan-specific terms or private mortgage insurance requirements.

Addenda and Affidavits (Sworn Statements)

Addenda and affidavits are standalone documents the borrower signs. Affidavits are sworn written statements — the borrower swears to the truth of a fact — and therefore typically require a jurat ("subscribed and sworn to before me").

Name Affidavit / Signature Affidavit

A document in which the borrower swears that they are the same person despite variations in name — e.g., that "Robert J. Smith," "Bob Smith," and "R. J. Smith" are all the same individual. This resolves name-mismatch issues that can cause recording rejections. Requires a jurat.

Occupancy Affidavit

The borrower swears that they will occupy the property as their primary residence (for owner-occupied loans) or states the intended use. Owner-occupancy affects loan eligibility, rates, and rescission rights. Requires a jurat.

Identity Affidavit

The borrower swears to their identity, often used when ID documents have discrepancies or to prevent fraud. Requires a jurat.

Compliance Agreement

The borrower agrees to comply with the closing instructions and to sign any additional documents the lender reasonably requires to correct clerical errors. Signed, but generally not notarized.

Informational Disclosures and Consents (Signed, Not Notarized)

These documents protect the borrower by confirming they received or agreed to specific notices.

• Right to Cancel (Rescission Notice) — for refinances of a primary residence, the borrower has a 3-business-day right to rescind. The NSA prepares the rescission dates and the borrower signs to acknowledge receipt. Not notarized.
• Initial Escrow Disclosure — shows the first-year escrow account analysis (taxes, insurance, monthly escrow payment). Not notarized.
• Transfer of Servicing Disclosure — notifies the borrower whether the loan servicing may be transferred. Not notarized.
• E-SIGN Consent — borrower consents to receive documents electronically. Not notarized.
• IRS W-9 / 4506-T — tax identification and request for copy of tax return. Not notarized.
• Authorization for Automatic Payments — borrower authorizes automatic monthly debits. Not notarized.

The 3-Day Right of Rescission in Detail

The Right to Cancel deserves special attention because miscalculating the rescission date is one of the most common NSA errors. For a refinance or home-equity loan secured by the borrower's principal dwelling, the borrower has until midnight of the third business day after consummation to cancel. (A refinance with the same creditor on the same property is exempt under 12 CFR § 1026.23(f)(2), except to the extent new money is advanced.)

Rules for the count:

• The day of signing is Day 0 — the count starts the next calendar day.
• Count three business days. Sundays and federal legal holidays are excluded from the count.
• The rescission date is the date by which the borrower must send the notice (postmark or delivery) — not the date the lender receives it.
• If the third business day is a federal holiday, the rescission period extends to the next business day.

The NSA fills in the rescission date on the Right to Cancel form at the table. The borrower keeps two copies; the lender/title gets the third. Purchase loans, investment-property loans, and second-home loans are NOT rescindable. If a borrower claims a rescission right on a purchase loan, the NSA directs them to the lender — the NSA does not adjudicate the question.

Matching the Notarial Act to the Document

A core NSA skill is applying the correct notarial act to each document:

Rule of thumb: If it is recorded or conveys an interest in land → acknowledgment. If it is a sworn statement of fact → jurat. If it merely acknowledges receipt or agreement → no notarization.