← NSA Notary Signing Agent — Loan Document Knowledge

Free NSA Notary Signing Agent — Loan Document Knowledge Practice Test (2026)

100 questions · 120 min · 80% to pass

100 Questions · 120 Minutes · 80% to Pass

Question 1 of 5

Sample Questions

Question 1

What is the Closing Disclosure (CD) and when must the borrower receive it?

Answer: The Closing Disclosure is a 5-page form that details the final loan terms, projected monthly payments, and all closing costs. Under the TRID rule, borrowers must receive it at least 3 business days before closing.

Question 2

What is the Right to Cancel (Notice of Right to Rescind) and which transactions does it apply to?

Answer: The Right to Cancel gives borrowers 3 business days to cancel a refinance or home equity loan on their primary residence without penalty. It does NOT apply to purchase transactions.

Question 3

What is the Promissory Note and why is it considered the most important document in a loan package?

Answer: The Promissory Note is the borrower's legal promise to repay the loan. It specifies the loan amount, interest rate, payment schedule, and consequences of default. It is the most important document because it creates the legal obligation to repay the debt.

Question 4

What is the purpose of the Deed of Trust in a loan signing?

Answer: The Deed of Trust secures the loan by using the property as collateral. It involves three parties: the borrower (trustor), the lender (beneficiary), and a neutral third party (trustee) who holds legal title until the loan is paid off.

Question 5

What is the difference between a Deed of Trust and a Mortgage?

Answer: Both secure a loan with property, but a Deed of Trust involves three parties (borrower, lender, trustee) and allows non-judicial foreclosure. A Mortgage involves only two parties (borrower, lender) and typically requires judicial foreclosure through the courts.