NSA Ethics and Best Practices 2 — Questions and Answers
Question 1: A borrower asks the NSA to hold onto a signed but undated document until the rescission period expires before dating it. What should the NSA do?
- Date it when the rescission period ends as requested
- Refuse, as backdating or forward-dating documents is fraudulent (Correct answer)
- Ask the lender's instructions before complying
- Date it with today's date and note the borrower's request
Correct answer: Refuse, as backdating or forward-dating documents is fraudulent
An NSA must never manipulate document dates; doing so constitutes fraud regardless of who requests it.
Question 2: During a signing, the NSA discovers the borrower's name on the documents is spelled differently than on their government-issued ID. What is the correct action?
- Proceed since minor discrepancies are common
- Contact the title company or lender to resolve the discrepancy before completing the signing (Correct answer)
- Correct the spelling on the documents yourself
- Ask the borrower to initial next to the correct spelling
Correct answer: Contact the title company or lender to resolve the discrepancy before completing the signing
Name discrepancies must be reported to the hiring party so they can issue corrected documents rather than risk a defective closing.
Question 3: Which behavior best demonstrates an NSA's commitment to impartiality?
- Recommending the borrower accept the loan terms because they seem fair
- Translating loan documents into the borrower's native language to ensure understanding
- Witnessing signatures without advising the signer on whether to sign (Correct answer)
- Suggesting the borrower negotiate a lower interest rate before signing
Correct answer: Witnessing signatures without advising the signer on whether to sign
An impartial NSA facilitates the signing process without influencing the signer's decision to execute documents.
Question 4: An NSA is offered a $100 tip by a grateful borrower after a smooth signing. What is the most ethical response?
- Accept it as a personal gift unrelated to the notarial act
- Decline and explain that tips could create the appearance of a conflict of interest (Correct answer)
- Accept only if it does not exceed the state's maximum notary fee
- Accept it but report it on the signing confirmation
Correct answer: Decline and explain that tips could create the appearance of a conflict of interest
Accepting gratuities beyond the agreed fee can compromise the NSA's neutrality and create ethical concerns.
Question 5: A borrower reveals during a signing that they are under significant financial pressure and feel forced to sign. How should the NSA respond?
- Remind them that locking in the rate now is the best choice
- Note the concern in a personal log and continue the signing
- Stop the signing, inform the borrower they may choose not to sign, and notify the hiring party (Correct answer)
- Advise them to call their attorney after the signing is complete
Correct answer: Stop the signing, inform the borrower they may choose not to sign, and notify the hiring party
A signer who may be signing under duress raises a willingness concern; the NSA must halt and report rather than proceed.
Question 6: What is the primary reason an NSA should never provide legal advice about loan documents?
- It is outside the scope of notarial duties and constitutes unauthorized practice of law (Correct answer)
- Borrowers rarely understand legal terminology anyway
- The lender is the only party authorized to explain loan terms
- NSA certification does not include a legal knowledge component
Correct answer: It is outside the scope of notarial duties and constitutes unauthorized practice of law
Explaining legal rights or obligations exceeds notarial authority and constitutes the unauthorized practice of law in all states.
Question 7: An NSA realizes after leaving a signing that one required notarial certificate was not completed. What should they do?
- Return to the borrower's home and complete it without telling the hiring party
- Immediately notify the title company or lender so they can arrange a cure (Correct answer)
- Complete the certificate from memory and mail it in
- Wait to see if the lender notices before taking action
Correct answer: Immediately notify the title company or lender so they can arrange a cure
Promptly notifying the hiring party allows them to arrange a re-sign or other cure before the loan is funded with a defective document.
NSA Ethics and Best Practices 2
A borrower asks the NSA to hold onto a signed but undated document until the rescission period expires before dating it.
What should the NSA do?