Loan Documents and Procedures Flashcards
7 cards from real NSA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Loan Documents and Procedures flashcards as text
Before beginning a loan signing appointment, what is the first thing an NSA should verify about the borrower?
Answer: Their identity using a current government-issued photo ID
Verifying the signer's identity with a valid, government-issued photo ID is the NSA's primary duty before any documents are signed.
An NSA arrives at a signing and the borrower says they need to make a correction to a dollar amount on the Closing Disclosure. What should the NSA do?
Answer: Contact the lender or signing service for instruction before altering any document
NSAs must never alter loan documents on their own; any corrections require authorization from the lender or title/escrow company.
What does it mean when a loan package is described as 'dry funding'?
Answer: Funds are disbursed only after documents are reviewed and approved post-closing
In a dry funding state, the lender reviews signed documents before releasing funds, meaning money is not available on the day of signing.
Which of the following best describes a 'wet funding' closing?
Answer: Funds are disbursed on the same day documents are signed
In wet funding states, loan funds are disbursed on the same day the loan documents are signed and notarized.
What should an NSA do if a borrower refuses to sign the Right of Rescission notice?
Answer: Explain its purpose and contact the lender or signing service for guidance
The NSA should explain the document's purpose and immediately notify the lender or signing service, as the rescission notice is legally required.
After a loan signing is complete, documents should be returned to the title or escrow company in what manner?
Answer: According to the specific shipping instructions provided by the hiring party
NSAs must follow the exact return shipping instructions provided by the lender, title, or signing service, typically using an overnight carrier.
When a borrower asks the NSA to explain whether they should accept the loan terms, the NSA should:
Answer: Recommend the borrower consult a financial advisor and decline to advise
NSAs are prohibited from giving legal or financial advice; they should refer borrowers to their lender, attorney, or financial advisor for such questions.