Notary Signing Agent (Loan Signing) Practice Test
Closing Disclosure and TRID: practice questions
Our Notary signing agent bank has 55 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.
Question 1
On a Closing Disclosure, the Loan Terms table shows which of these?
- Seller's net proceeds, the commission split and the earnest money
- The appraised value, the borrower's credit score and the debt-to-income ratio used
- The title policy premium, the recording fees, the transfer taxes and the survey fee
- Loan amount, interest rate, monthly principal and interest, prepayment penalty and balloon payment
Show the answer
D. Loan amount, interest rate, monthly principal and interest, prepayment penalty and balloon payment — 1026.38(b) points to 1026.37(b): Loan Amount, Interest Rate, Principal & Interest, Prepayment Penalty and Balloon Payment, each with 'Can this amount increase after closing?'
Question 2
If an event in the 30 days after consummation changes an amount the borrower actually paid, what must the creditor do?
- Nothing, because the loan has already closed
- Ask the signing agent to return to the borrower's home for a completely new signing
- Deliver or mail a corrected Closing Disclosure within 30 days of learning of the event
- Re-start the three-day waiting period and schedule a new consummation date
Show the answer
C. Deliver or mail a corrected Closing Disclosure within 30 days of learning of the event — 1026.19(f)(2)(iii): corrected disclosures must be delivered or placed in the mail within 30 days after receiving information sufficient to establish the event occurred.
Question 3
The CD's 'Tax Deductions' statement warns about interest on which part of a loan?
- The part used to pay the seller's closing costs
- The part of the loan used to pay the buyer's real estate agent commission
- The part of the loan used for mortgage insurance
- The part of the credit that exceeds the property's fair market value
Show the answer
D. The part of the credit that exceeds the property's fair market value — 1026.38(p)(5): interest on the portion of the credit that is greater than the fair market value is not deductible for federal income tax purposes.
Question 4
Who may provide the Closing Disclosure to the consumer?
- Only the borrower's real estate agent
- Only the notary signing agent at the appointment
- Only the county recorder's office, after the deed is recorded
- The creditor, or a settlement agent for the creditor
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D. The creditor, or a settlement agent for the creditor — 1026.19(f)(1)(v): a settlement agent may provide the CD, but the creditor must ensure the disclosure meets all requirements.
Question 5
Fees on the Loan Estimate fall into tolerance groups at closing. Which statement matches CFPB guidance?
- No fee may change at all once the Loan Estimate has been issued to the borrower
- All fees may rise by up to 10 percent in total, but no single fee may rise more
- Some fees cannot increase, some can increase up to 10 percent, and some can change by any amount
- Fees may change only if the signing agent approves
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C. Some fees cannot increase, some can increase up to 10 percent, and some can change by any amount — CFPB: some costs can't increase at all (unless the borrower or their information changed), some can increase by no more than 10 percent, and others can change by any amount.