Notary Signing Agent (Loan Signing) Practice Test
Conduct and the signing appointment: practice questions
Our Notary signing agent bank has 44 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
A borrower asks the signing agent whether an adjustable-rate loan is a good idea. The agent should:
- Give an honest opinion based on experience with many similar loans
- Recommend refinancing later
- Tell the borrower to sign and decide later
- Decline to advise and refer the borrower to the lender or an attorney
Show the answer
D. Decline to advise and refer the borrower to the lender or an attorney — RULONA §25(a)(1): a notary commission does not authorize giving legal advice or practicing law. Loan questions go to the lender; legal questions to an attorney.
Question 2
RESPA's Section 8 (12 CFR 1024.14) prohibits:
- Charging the borrower any fee at all for a mobile loan signing
- Using a notary in a closing
- Charging interest on a mortgage
- Giving or accepting a fee for referring settlement service business
Show the answer
D. Giving or accepting a fee for referring settlement service business — 12 CFR 1024.14(b).
Question 3
Form W-9 is used to:
- Request transcripts of the borrower's past tax returns from the IRS
- Give the taxpayer identification number and certify backup withholding status
- Report wages to an employer
- Disclose closing costs
Show the answer
B. Give the taxpayer identification number and certify backup withholding status — Form W-9 requests the TIN (usually the SSN for individuals) and certifications such as backup withholding status.
Question 4
Under RESPA, splitting a settlement charge is allowed only:
- For services actually performed
- If the borrower agrees in writing to the split before closing
- If under $50
- Never under any circumstances
Show the answer
A. For services actually performed — 12 CFR 1024.14(c): no portion, split or percentage of a charge except for services actually performed.
Question 5
On the day of a refinance signing, the borrower gets an email with 'updated' wiring instructions. The signing agent should advise the borrower to:
- Verify the change by phone at a known, trusted number
- Use the new instructions because they're the most recent
- Reply to the email to confirm the account
- Wire half to each account to be safe
Show the answer
A. Verify the change by phone at a known, trusted number — CFPB warns scammers pose as real estate or settlement agents with last-minute wiring changes to steal closing funds. Confirm by phone using a number you already trust.