Download Notary Practices: Deeds of Trust, Loan Disclosures, and Responsibilities and more Exams Business Economics in PDF only on Docsity!
loan signing notary cards 137
Questions
Where is the deed of trust recorded - ✔ ✔ The Deed of Trust is recorded in the public records, letting the public know that there is a lien on the property. With this document, lenders can bypass judicial foreclosure because the trustee has the power to foreclose.
What are the three parties involved in a Deed of Trust - ✔ ✔ the trustor (borrower), the beneficiary (lender) and the neutral trustee (third party). The trustee holds temporary (but not full) title until the lien is paid.
It is advisable that the borrower places their initials on each page of the Deed of Trust.
Deed of trust important information - ✔ ✔ Date
Loan amount
Borrower(s) name(s)
Beneficiary name
Beneficiary address
Property location
Principal sum
Borrower and lender covenants
Notice of Right to Cancel - ✔ ✔ This document is designed to protect the borrower. After signing a loan, the borrower has three days to cancel the loan. These three days are not three calendar days; Sundays and legal holidays are not taken into account.
Sample:
Borrower signed on Monday, so he can cancel until Thursday, midnight.
The borrower must sign all original documents and be careful to sign in the correct place.
Notice of Right to Cancel important information - ✔ ✔ Date
Loan number
Borrower name(s)
Property address
Right to cancel information
How to cancel information
The Truth in Lending Disclosure - ✔ ✔ This document informs the borrower of all costs relating to the credit portion of a financial transaction. Important points in this document include the APR (annual percentage rate) and the actual percentage rate. The annual percentage rate is higher than the actual percentage rate because it is a combination of the amount of interest to be paid over the life of the
Requested Copy of Transcript of Tax Form 4506 - ✔ ✔ The lender uses this form to get information about the borrower's income. The form also includes information about the borrower's spouse (if he/she has one).
The Uniform Residential Loan Application Form 1003 - ✔ ✔ This form contains personal and financial information about the borrower. It does not always maintain correct information-if the borrower complains of the veracity of the information contained within it, it is advisable to let the lender know that this document is not final, and point out the note that is final and that contains the accurate information.
Is the notary bond an insurance policy? - ✔ ✔ No, It is important to note that the notary bond is not an insurance policy for the notary. It is designed only to provide a limited fund for paying out in claims against him. The notary remains personally liable to the full extent of the damage sustained and may be required to reimburse the bonding company for sums paid by the company because of misconduct or negligence of the notary public.
Who does the Notary bond protect? - ✔ ✔ The notary bond protects the public against a notary's misconduct or negligence; however, it does not protect the notary. The bond provides coverage for damages to anyone who suffers financially due to a blunder on the part of a notary - whether intentional or not. The guaranteeing company will seek compensation from the notary for any damages it has to pay out on the notary's behalf.
A notary must verify that the name on the signer's ID is identical to the name on the document before it can be notarized. - ✔ ✔ Example: If the document states "John Smith Jr.," then the ID also must read "John Smith Jr."
If, however, the document states, for example, "John C. Smith" but the ID reads "John Smith," then that document cannot be notarized because the identification document contains less information than does the signature.
If, for example, the document states "John Smith" and the ID reads "John C. Smith," then that document can be notarized because the identification document contains more information than does the signature.
Note: The identification document may contain more information than the signature, but never less.
What are the most common requirements for a seal: - ✔ ✔ It is photographically reproducible when it is affixed to a document; it contains the state seal, the words "Notary Public," the name of the notary public as shown on the commission, and the name of the county where the oath of office and notary bond are on file; it should contain the expiration date of the notary public's commission, the identification number assigned to the notary, and the identification number assigned
Can a A document be accepted by the recorder if the notary seal is illegible. - ✔ ✔ No The notary stamp should leave a clear impression, and all the elements must be clearly visible.
The seal should not be placed over signatures or any printed matter on the document. An illegible or improperly-placed seal may result in rejection of the document for recordation and result in inconveniences and extra expenses for all those involved.
Why should a notary have a journal? - ✔ ✔ People deny being notarized using your services. Maintaining a journal, the notary will not have a problem because he/she will maintain customers' names, addresses, signatures, types of documents notarized, etc.
People falsely use your notary number and signature. Having a journal, the notary will have a record of all people being notarized.
Having records, you can defend yourself in court actions. Your journal is your best witness, and when you have all records, nobody can accuse you of fraud.
A notary public is human and can make a mistake. If a mistake is made, the notary can have a record of clients' names, addresses, etc., and the mistake can be resolved without unnecessary legal costs or disciplinary action carrying to the suspension or revocation of his/her license.
It is not expensive to maintain a journal; the cost of a journal is low, compared to the protection it will give. Every time a notary is signing, he/she will have a legal record.
What should the journal include: - ✔ ✔ The date, time, and type of each official act. Official acts are acknowledgments, jurats, etc.
The type of document notarized (e.g., deed of trust, affidavit of support, etc.)
The signature of each person whose signature is being notarized
A statement on how the identity of the person making the acknowledgment or taking an oath or affirmation was confirmed. If the identity was made by personal knowledge, the journal entry should read "personal knowledge." If identity was established by satisfactory evidence, then the journal shall contain the signature of the credible witness swearing or affirming to the identity of the individual or the type of identifying document, the governmental agency issuing the document, the serial or identifying number of the document, and the date of issue or expiration of the document.
If the identity of the person making the acknowledgment or taking the oath or affirmation was established by the oaths or affirmations of two credible witnesses, the credible witnesses must present satisfactory evidence of the type of identity document, the identifying numbers of the document, and the dates of issuance or expiration of the document.
The fee charged for the notary's services.
Can a member of the public can request a photocopy of a line item of the journal. - ✔ ✔ Yes In order to obtain this photocopy, the member of the public must issue a written request, including the names of the parties, the type of document, and the month and year in which it was notarized.
What if documents are incomplete? - ✔ ✔ Notaries are prohibited from notarizing documents that are incomplete. If there are blank
public, a signing agent is liable for damages sustained by a person injured due to a notary's official misconduct. Official misconduct is interpreted as unauthorized and unlawful duty. Thus, this job entails responsibilities and is very demanding in terms of the need for concentration at all times. However, notary signing agents are not responsible for the veracity of documents about to be signed.
What are the of advantages of working as a signing agent in a loan signing company - ✔ ✔ Training
Information
Support and advice from experienced signing agents
Provision of clients
Forums
independent contractor agreement. - ✔ ✔ A notary signing agent and his/her client (lender) usually define their responsibilities to each other (including legal material, along with all additional payments) in a separate document,
What is a Mortgage? - ✔ ✔ A mortgage is a device used to create a lien on real estate by contract. The mortgage is an instrument that the borrower (called the mortgagor) uses to pledge real estate to the lender (called the mortgagee) as security for a debt, also called "hypothecation." The mortgage, as a rule, consists of the promissory note and the pledge.
Adjustable-rate mortgages - ✔ ✔ a mortgage with an interest rate that changes based on market conditions
Fixed-rate mortgages - ✔ ✔ are characterized by their constant interest rate and, in turn, constant monthly payments.
Capped-rate mortgages - ✔ ✔ mortgages in which the borrower pays the accrued interest at a constant rate, but if the actual rate falls below the capped rate, then the borrower pays at the lower rate.
Discounted-rate mortgages - ✔ ✔ are mortgages in which the borrower repays the loan at a discounted interest rate for a certain period of time.
Reverse mortgages loans - ✔ ✔ Elderly people want to receive money while living in their homes. When the borrower dies, his/her property is sold and the credit is repaid from the proceeds.
How to obtain a Mortgage - ✔ ✔ In order to obtain a mortgage, a person should fill in a loan application, prepare all of the paperwork required by the lender (see below), and deliver it to the lender. The lender is required by law-Good Faith Estimate and Truth in Lending-to return the disclosures to the borrower within three days.
Lenders usually demand that borrowers present the following documents: - ✔ ✔ Verification of income
Verification of assets
Information about the purchase
Information about the debts
Additional personal information
Verification of income includes - ✔ ✔ statements of earnings for the past two years; profit and losses from self-employment (if applicable)
True or False When a lender processes and analyzes information about a borrower, he/she can determine the size of the loan that they are able to give to the borrower. This size depends on the borrower's ability to repay the debt. When the borrower knows the amount of the possible loan, he/she can negotiate the terms of the mortgage and its type - ✔ ✔ True
Mortgage loans imply different additional fees for the borrower (or the lender, which is very seldom, but it depends upon prior negotiations). The following fees may apply: - ✔ ✔ Discount fee (this fee usually reduces interest on a pro rata basis)
Loan origination fee (this is the compensation for the lender due to his/her operation costs for organizing the mortgage)
Application fee (this usually is paid when the borrower completes the application form for the debt)
Appraisal fee (this fee increases directly on a pro rata basis with the price of the house; it pays for an independent appraisal of the house, which the lender needs to know in order to assess how much money he can lend)
Factors that Determine the Market Value of the Property - ✔ ✔ Present cash value, use
Location
Replacement value of improvements
Condition
Income from property
Net proceeds if the property is sold, etc.
True or False Moreover, lenders usually suggest a mortgage that does not exceed 95% of the assessed property. - ✔ ✔ True
More costs may include the following: - ✔ ✔ Credit report fee (this fee pays for an independent assessment of the borrower's solvency)
Title search and insurance fee (these costs are related to the investigation of the property's history)
Flood certification costs (related to an investigation into whether or not the property is situated in a flood zone, and if it is, it then implies flood insurance costs)
Survey fee
Paperwork fee
Costs of attorneys
Real estate taxes (regulated by the state law)
What is a Escrow account costs - ✔ ✔ Escrow account costs (lenders often require a borrower to create such an account as a guarantee that the borrower pays insurance fees and taxes on the real estate in time so that he/she does not lose his/her pledge; usually governmental loan companies require an escrow account but private companies may not require it) and some others, depending on the situation. In this part, there also must be mention of the fact that most lenders require an immediate down payment at a certain rate of the purchase price (different lenders require different down payments-from 3% up to 30%-
agent has a laser printer or fax machine in case these documents need to be sent by email, faxed, or downloaded from a site. As a notary signing agent, you should know the cities around your business, and if you are not sure of the location, it is better to be sure before accepting the assignment. If you have a computer close, it is best to look for the location and have an idea of the distance. It is also advisable to have a map if you do not have a computer close to you. It is best to know the distance, how the documents will be received, etc. before accepting or declining the assignment.
True or False As a loan signing agent, you know your fees in advance. - ✔ ✔ True
Sample:
Local service $.............40 miles max
Extra mile $.....
Use of printer $.....
(It is not the same fee if you receive the documents by mail or go to your computer and download all documents from an email or website and print them.)
What are questions to ask before a signing - ✔ ✔ A question to ask in this call is to know what the policy of the company is when borrowers do not sign the documents at the date of the appointment— and what the notary fees are if this happens. Following this advice will
reduce the occurrence of these problems, but it is better to know what the loan signing fees will be.
Should you record the contact phone number, should any questions arise upon receiving the assignment. - ✔ ✔ Yes
After the call, the notary signing agent will receive the assignment form, usually sent by fax and having all of the information regarding the assignment. The form will have what important information. - ✔ ✔ Order number
Borrower's name and number
Borrower's address
Signing location
Signing time
Assigner's contact information
Notary signing agent fee
Document's return destination with an account number for the delivery service (it could be FedEx, UPS, etc.)
Additional instructions
The notary signing agent also will receive a confirmation form with more additional instruction, such as - ✔ ✔ A specific number to call when the notary signing agent is at the borrower's home
A contact number in case of any question that the notary signing agent or borrower has about the assignment or documents
When printing the loan signing documents It is advisable to put all paper in the printer of legal size 8.5 x 14 inches - ✔ ✔ Yes doing this ensures that all documents will be printed correctly.
If picking up the documents at the lenders what must the notary verify - ✔ ✔ The notary must verify that if two copies are delivered to him/her, all of the documents are finished: It would be an unnecessary expense to return to the office because of a small error in the documents.
If the loan papers are sent to the borrower what should the loan signing agent do? - ✔ ✔ The loan signing agent should call the borrower and ask if he/she received the documents, and if the loan signing agent has any question about the loan, he/she should ask the loan officer.
Notarization of these documents will be done quickly because the lender already knows what he/she is signing and there will be no questions related to the documents.
When contacting the borrower what should the loan signing agent inform the borower - ✔ ✔ The notary signing agent has the documents and read the assignment form; now, he/she personally contacts the borrower to gauge the best time and place to meet. The agent then identifies which procedures must be fulfilled, which signatures and initials must be appended and at which positions, the deadline, the consequences of signing, the travel route and any other procedures and documents that are required by his/her client, and
consequently implements them. As mortgage contracts may consist of 100 pages or more, the number of signatures can be incredible.
How should the notary Verify Borrower's Name - ✔ ✔ The notary signing agent should verify in this call that the borrower's name in the documents is the same as the signer's. Ask his/her complete name exactly as it shows on his/her ID.
What should the notary do if there are some differences btw the documents and the borrower's name - ✔ ✔ If there are some differences, the notary signing agent needs to call the lender and advise it of these differences. As a notary public, you need to follow the steps concerning notarizing a document and identifying the signer.
How can a notary Comply with Lender's Instructions - ✔ ✔ When the notary signing agent receives the package, there are some instructions that need to be done at the time of notarization. They could be taking a photocopy of his/her ID, social security, W-2 form, pay stub, etc. In this call, you need to inform the borrower to take these photocopies and be ready when the signing takes effect.
What should you do if you do not feel safe at a loan sigining location. - ✔ ✔ If you do not feel safe or secure about this signing, it is better to arrange the signing at a public place, such as the library, a restaurant, etc. and make the appointment during daylight hours.
Why is it important to verify the borrowers phone number - ✔ ✔ It is important to have the borrower's home number and cellular phone number verified; sometimes loan documents have a wrong number. When asking to verify the borrower's number, the notary signing agent should give his/her own phone number in order to be in contact.
