Post-Signing Procedures and Compliance Flashcards
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Read the first 7 Post-Signing Procedures and Compliance flashcards as text
What is a 'cure' in the context of post-signing loan document compliance?
Answer: Correcting a minor document deficiency to allow the loan to fund
A cure is a correction made to a document error or omission—such as a missing initial—that allows the loan to proceed to funding.
Which document gives borrowers on a primary residence refinance the right to cancel the loan within three business days?
Answer: Notice of Right to Cancel (Right of Rescission)
The Notice of Right to Cancel, required by TILA/Regulation Z, gives eligible borrowers three business days to rescind a refinance transaction.
How many copies of the Notice of Right to Cancel must typically be provided to each borrower?
Answer: Two copies per borrower
Federal law requires lenders to provide two copies of the Notice of Right to Cancel to each eligible borrower.
An NSA's E&O (Errors and Omissions) insurance is primarily designed to protect against:
Answer: Financial losses caused by the NSA's mistakes or omissions during the signing
E&O insurance covers the NSA if a client suffers financial harm due to the NSA's professional errors or oversights.
After a signing, a borrower calls the NSA asking about their loan interest rate. The NSA should:
Answer: Refer the borrower to the lender or title company
NSAs must not provide legal or financial advice; all loan-specific questions should be directed to the lender or title company.
What is the purpose of the Closing Disclosure in a loan package?
Answer: To provide the borrower with final loan terms, costs, and cash to close figures
The Closing Disclosure (CD) is required under TRID and itemizes all final loan terms, fees, and the amount needed at closing.
What should an NSA do if they realize they completed a notarization in the wrong state format while out of their home state?
Answer: Notify the hiring company immediately and follow their instructions
Notarial format errors can invalidate a document, so the NSA must promptly notify the hiring company to determine how to remedy the issue.