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11 of 50 Sample Questions from
the Loan Signing Certification Exam
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1. The “Transfer of Service Disclosure (RESPA).”

  1. Discloses the probability that the closing agent will service the loan beyond the closing.
  2. Discloses the probability that the borrowers impound account will be transferred to another service.
  3. Discloses the probability that the loan will be assigned, sold or transferred to another company.
  4. All of the above

2.  On what type of loan would you never see the payment amount indicated on the note?

  1. Fixed rate loan
  2. Equity line of credit (unless it is fixed, and there is a truth in lending statement which discloses the monthly payment)
  3. Adjustable rate loan
  4. All of the above

3. The primary purpose of the Preliminary Change of Ownership Report is:

  1.  To transfer property.
  2.  To clearly indicate the vesting of the property transfer.
  3.  To release the liability of the previous property owner.
  4.  Required by the county assessor’s office to determine if the transfer of property or change in vesting affects the amount of tax assessment.

4. You are presenting the “Three-Day Right to Cancel” form. The borrower signs on the “I Wish to Cancel” Line by mistake. The best way to correct this mistake is?

  1. White it out
  2. Cross it out and have the borrowers initial
  3. Find the borrower copy and start over
  4. Ignore the problem it will be fixed at the title company

5.  Mrs. Smith is signing her loan documents on November 23rd and Mr. Smith will be signing his documents the next day on the 24th.  When does the 3-day right to cancel time period begin?

  1.  Escrow company determines when it starts
  2.  It starts with the November 23rd signing
  3.  The escrow company determines when it starts
  4. It starts with the November 24th signing

6.  The “Compliance Agreement” requires the borrower to?

  1.  To adjust the errors in the loan documents at the time of the signing.
  2.  To take an oath or affirmation that the loan documents are correct.
  3.  To cooperate in adjusting errors in the loan documents after the signing.
  4.  To allow the lender’s representative to modify the terms and conditions of the loan after signing.

  
7. The Limited Power of Attorney allows the lender to

  1. Change names in the document
  2. Change minor clerical errors like incorrect zip codes, misspelled names, or incorrect ages.
  3. Change loan payment dates
  4. Transferring the loan to another company.

8. What is another name for the HUD?

  1. The Closing Statement
  2. The Settlement Statement
  3. Truth and Lending Disclosure
  4. Deed of Trust

9.   Which of the following documents does this book suggest that a notary presents to the borrower(s) at the beginning of the loan signing?

  1. The HUD Settlement Statement
  2. The Deed of Trust
  3. The Right to Cancel
  4. All of the above.

10.     Because the document will be recorded, which of the following documents is most important that your notary seal impression be absolutely photographically reproducible?

  1. The Note
  2. The Right to Cancel
  3. The Deed of Trust
  4. The Truth in Lending

11.     Which document shows the borrower(s) they have a prepayment penalty for paying off his/her loan early? 

  1. Truth in Lending
  2. The Closing Statement
  3. Instructions to Escrow
  4. The HUD Settlement Statement

 

Answers to these questions and much more are covered in the loan signing program.

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