Summary Notary Signing Agent Complete Study guide Part 2 (updated Winter 2022-2023), Exams of Law

Download Summary Notary Signing Agent Complete Study guide Part 2 (updated Winter 2022-2023) and more Exams Law in PDF only on Docsity! Notary Signing Agent 2023 HELOC - collect answerHome Equity Line of Credit Construction Loan - collect answerA short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses or is converted to a mortgage. Reverse Mortgage - collect answerA loan based on the equity in a home that provides homeowners with tax-free income and is paid back with interest when the home is sold or the homeowner dies. No payment as long as the borrower lives in the home. Things not to mention to borrower due to Fair Housing Act - collect answerGender Migratory status Religion Disability Culture Politics Questions to ask a contracting company if not provided automatically - collect answerHow many pages need to be faxed back? Are there any special circumstances, such as more than 2 borrowers or multiple locations of borrowers? After hours contact info for contract company contact, closing agent, including names, phone numbers and email addresses Independent Contractor's Agreement if first time working with this company P a g e 1 | 12 Things to keep on hand in case of unsolicited assignments - collect answerCopy of Drivers License Proof of Notary Commission Proof of E&O Insurance Completed W9 Proof of Surety Bond What you should receive soon after accepting assignment - collect answerConfirmation Form, Assignment Sheet, or Instruction Sheet. Reply in writing (could be via text or email) AFTER reading and understanding. Borrower Call Checklist - collect answer* My name, why I'm calling * Confirm address and time * What will happen at appointment - Will be signing loan documents, there will be two sets, one to sign and one to keep * Will take 45 minutes to an hour * What I need from them Government issued ID, current, with exact name, current * Explain roles and limitations * End on a positive note What to do if name on ID doesn't match loan exactly - collect answer* Is there another ID or is there a credible reference who has an ID How long after getting assignment should you call the borrower? - collect answerWithin one hour P a g e 2 | 12 What should you check in the Closing Document? - collect answerNo blank spaces Are there any ballon payments or pre-payment penalties to point out to borrower Adjustable payment/adjustable interest rates Check Costs at Closing, Cash to Close to see if there's anything to collect Compare Calculating Costs to Close / Payoffs & Payments to page 1 estimate to see if there were any changes Signature Request - If there isn't a signature line, you MUST have a separate signature loan acceptance page What to watch for on HUD-1 - collect answerPage 2 may require borrower signature Do not sign space for settlement agent signature Line 103 ? Notice of Right to Cancel - collect answer* Two copies must be given to each borrower, so you need 5 total. These instructions may not be included by lender, so you need to know this. * Cancellation date CAN be filled in by borrower (not you) or can be crossed out and changed by borrower * Be careful that the "I Wish to Cancel" line is not accidentally signed * Check that end of recission date is correct. Truth in Lending Disclosure - collect answerNot included if there is a Closing Document Contains APR Must be signed and dated What is the difference between APR and interest rate? - collect answerAPR contains the interest rate plus finance charges such as fees and points P a g e 5 | 12 Note - collect answerThe most critical document Obligates borrower to repay loan and sets out the terms for doing so Many provisions are the same as HUD-1 and Closing Document, but point them out anyway Interest rate is spelled out in paragraph 2 (not the APR) Where to pay First and last payment date Right to prepay Failure to pay Payment amount Must be signed ("seal" means sign, not notary) but not always dated Where can I find the interest rate? - collect answerNote Where can I find where to make payments - collect answerNote Where can I find the payment amount? - collect answerNote Where can I find the APR? - collect answerTruth in Lending if there is one, or Closing Document Where can I find out about prepayment? - collect answerNote, Closing Document Where can I find where my first and last payments are due? - collect answerNote Deed of Trust (or Mortgage, but not in WA) - collect answerThis is the "Security Instrument" referred to in the Note P a g e 6 | 12 Places a lien on property as security for the Note There are usually 3 parties: borrower, lender and trustee (often a title company) The lender is the beneficiary Where can I find info on balloon payments, adjustable rates? - collect answerClosing Document What documents are usually notarized? - collect answerOccupancy and Financial Status Affadavit Signature Affadavit and AKA Statement Limited Power of Attorney Compliance Agreement Notarial Evidence Form What document should be filled out by you before meeting with the borrower? What should you do with it at the meeting? - collect answerNotarial Evidence Form Show it to them, but they do not do anything with it What documents are commonly referred to as the "Borrower's Disclosures"? - collect answerUniform Residential Loan App, or 1003 HUD/VA Addendum (only for these loans) USA Patriot Act Customer ID Verification Borrower's Certification Authorization IRS Form 4506-T IRS Form W-9 Uniform Residential Loan App - collect answerAlso referred to as the 1003 by lenders P a g e 7 | 12 What documents are considered to be the Lender's Instructions or Closing Instructions? - collect answerGeneral Closing Instructions Specific Closing Instructions Tax Information Sheet General Closing Instructions - collect answerThe signature space for Agent is NOT YOU. Leave this blank. Specific Closing Instructions - collect answerContains a list of documents that should be checked for accuracy Contains loan terms, includes some stipulations Usually must be signed by the borrower Tax Information Sheet - collect answerThis is a prep sheet only, don't do anything with it and DO NOT present it to the borrower. What documents should notaries NOT complete (ever)? - collect answer* Positive Proof of ID and Notary Signature Affidavit * Notary Identification Certification * Blank Acknowledgement Certificates What should you do if your loan package includes a Positive Proof of ID and Notary Signature Affidavit? - collect answerDon't sign it, send it back with a note saying by law you are unable to fulfill this request because it does not have notarial wording and does not require borrower signatures. P a g e 10 | 12 What should you do if your loan package includes a Notary Identification Certification? - collect answerDon't sign it, send it back with a note saying by law you are unable to fulfill this request because you cannot certify your own signature and cannot stamp paper that doesn't include notarial wording. Suggest they check with the agency that issues notary commissions in your state for verification. What should you do if you are asked to notarize blank Acknowledgement Certificates? - collect answerDon't do it, send it back with a note saying by law you are unable to fulfill this request because there are no documents attached to the certificates. How do you turn a How, When or What question from a borrower into something you can answer? - collect answerMake it a Where question instead. Point out where they can find this information in the documents. Point to the answer. What should you do if the loan documents are sent directly to the borrower? - collect answerA. Contact the borrower to verify: 1. Name is exactly correct, including spelling 2. Ask them to read you the info on their ID and match it to your form and theirs. 3. Property address 4. Loan terms 5. Dates B. Instruct them to contact the lender with any questions. C. Instruct them NOT to sign until you arrive. What fees am I paying? - collect answerThis can be found on the Closing Document P a g e 11 | 12 HUD-1 or Good Faith Estimate (HELOC and Reverse only) Loan Estimate Where do I send my check? - collect answerTell borrower this information can be found on the Deed of Trust or Mortgage How much money did I end up borrowing? - collect answerTell borrower this information can be found in the Closing Documents, Note, and Impound Authorization and First Payment Notification documents How long is the loan for? - collect answerTell the borrower this info can be found in the Note or Specific Closing Instructions P a g e 12 | 12