Loan Signing Procedures and Protocols Quiz
Explore loan signing essentials with 12 questions covering roles, documents, and regulations. Test your knowledge now!
#1
What is the role of a loan signing agent?
Approving loan applications
Marketing financial products
Facilitating the signing of loan documents
Managing bank transactions
#2
What is a common form of identification used in loan signings?
Social Security Card
Library Card
Employee ID
Passport
#3
Which document typically outlines the terms and conditions of a loan?
Warranty Deed
Grant Deed
Promissory Note
Title Insurance Policy
#4
What is the purpose of the Closing Disclosure in a loan transaction?
To market the loan to potential buyers
To provide a summary of loan terms and costs
To verify the borrower's identity
To appraise the property value
#5
What is the primary purpose of the Truth in Savings Act (TISA)?
Regulate credit card transactions
Ensure accuracy in financial reporting
Provide disclosures about terms and conditions of deposit accounts
Establish interest rate benchmarks
#6
In a loan signing, what does the term 'escrow' refer to?
A neutral third party that holds and disburses funds
The interest rate on the loan
The process of signing loan documents
A legal document indicating ownership of a property
#7
In the loan signing process, what is a common role of a notary signing agent?
Assessing property values
Negotiating interest rates
Confirming the borrower's identity and witnessing signatures
Marketing financial products
#8
What is a notary public's role in loan signings?
To evaluate creditworthiness
To witness and authenticate signatures
To negotiate interest rates
To approve loan applications
#9
Which party typically provides the Closing Disclosure to the borrower?
Lender
Real Estate Agent
Borrower
Title Company
#10
What is the Loan Estimate, and when is it provided to the borrower?
A document detailing the estimated closing costs; provided within three business days of loan application
A report on the borrower's credit history; provided at closing
A summary of the borrower's income and expenses; provided during pre-qualification
A statement of the property's market value; provided at the loan approval stage
#11
What is the purpose of the Deed of Trust in a mortgage transaction?
Transfer ownership of the property to the lender
Serve as collateral for the loan
Outline the terms of the loan agreement
Verify the borrower's income
#12
What is the significance of the APR (Annual Percentage Rate) in loan transactions?
It represents the total cost of borrowing, including interest and fees, expressed as a yearly percentage
It determines the loan's approval or denial
It indicates the property's market value
It evaluates the borrower's credit score
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