SRA Designation (Appraisal Institute)

Correct: According to NNA standards and general notarial best practices, a Notary Signing Agent must first ensure that their state’s laws allow a notary to serve as a witness on a document they are notarizing. Furthermore, because the NSA is an agent for the lender/title company, they must strictly adhere to the closing instructions provided, which frequently prohibit the notary from acting as a witness to ensure the document’s integrity and avoid potential legal challenges.

Incorrect: Automatically serving as a witness is incorrect because it ignores the possibility of state-specific prohibitions or restrictive lender instructions. Declining the notarization entirely is incorrect because dual capacity is legally permissible in many jurisdictions, provided instructions allow it. Having the borrower sign as their own witness is a violation of the fundamental purpose of a witness, which is to have a disinterested third party verify the execution of the document.

Takeaway: A Notary Signing Agent must verify both state law and specific lender instructions before acting as a witness on a document they are also notarizing.

Correct: According to NNA standards, a Notary Signing Agent (NSA) may identify a document and describe its general purpose but must avoid providing legal advice or interpretations. Explaining the legal consequences of a missing signature or the specific impacts of federal laws like the Truth in Lending Act (TILA) constitutes the unauthorized practice of law. The NSA’s role is to facilitate the signing and refer technical or legal questions to the lender or closing agent who has the authority to provide such information.

Incorrect: Providing specific legal interpretations of TILA or the consequences of non-compliance involves the unauthorized practice of law. Advising that a closing can proceed without all necessary parties or providing detailed regulatory summaries exceeds the ministerial duties of a Notary and can lead to professional liability or the voiding of the loan transaction.

Takeaway: Notary Signing Agents must limit document explanations to general descriptions and refer all legal or regulatory inquiries to the lender to avoid the unauthorized practice of law.

Correct: NNA standards and state laws require a notary seal to be sharp, legible, and capable of being photographically reproduced. If a seal is worn or damaged, it must be replaced to ensure document validity. Proper disposal, such as defacing or destroying the old seal, is a critical security measure to prevent unauthorized or fraudulent use of the notary’s credentials.

Incorrect: Applying a second seal impression can lead to document rejection by county recorders or title companies due to clutter or ambiguity. Manually correcting or ‘filling in’ a seal impression with a pen is considered an unauthorized alteration of a notarial act and can invalidate the document. Commissioning authorities do not typically grant exemptions for illegible seals, as the clarity of the seal is a fundamental legal requirement for the notarization to be recognized.

Takeaway: A Notary Signing Agent must ensure their seal produces a clear, legible, and reproducible impression at all times to maintain the legal integrity of notarized documents.

Correct: According to NNA guidelines and industry best practices, a Notary Signing Agent (NSA) should maintain a detailed journal for every notarial act to provide evidence of due diligence. Furthermore, while a surety bond is often required by the state to protect the public, it does not protect the notary. Errors and Omissions (E&O) insurance is the specific tool designed to protect the notary from financial loss resulting from unintentional mistakes or omissions.

Incorrect: Relying on a surety bond is incorrect because the bond protects the consumer, and the notary is usually required to pay back the surety company for any claims. Delegating identity verification is a violation of the notary’s primary duty to personally witness and verify the signer’s identity. Limiting record-keeping is a poor risk management strategy; a comprehensive journal is a notary’s best defense in proving that they followed proper procedures during a transaction.

Takeaway: Effective risk management for a Notary Signing Agent involves the dual approach of maintaining a detailed journal for all acts and securing adequate Errors and Omissions insurance.

Correct: NNA Best Practices and the Signing Professional Code of Conduct require that a Notary Signing Agent protect the confidentiality and security of the borrower’s Private Information (PII). If documents cannot be shipped immediately, they must be stored in a secure, locked environment under the Notary’s exclusive control. Furthermore, the NSA has a professional obligation to communicate any delays in the process to the contracting company or lender so they can adjust their funding or processing timelines accordingly.

Incorrect: Storing documents in a vehicle is considered a significant security risk and a violation of PII protection standards, as vehicles are susceptible to theft and environmental damage. Scanning documents to a personal cloud drive is a violation of data privacy protocols unless the NSA is using a lender-approved, encrypted system; personal cloud storage lacks the necessary security controls for financial documents. Delivering documents to a private residence of a bank employee is highly unprofessional and violates standard chain-of-custody procedures and privacy expectations.

Takeaway: Notary Signing Agents must maintain the physical security of loan documents in a locked, private location and promptly communicate any logistical delays to the hiring entity.

Correct: Under NNA and MISMO standards for Remote Online Notarization, identity proofing via Knowledge-Based Authentication (KBA) requires a signer to correctly answer at least 80% of the questions (typically 4 out of 5) within a two-minute timeframe. If the signer fails the first attempt, they are permitted one retake. Crucially, this second attempt must utilize a different set of questions generated from the signer’s credit or public record history to ensure the integrity of the dynamic authentication process.

Incorrect: Allowing a secondary ID to bypass a failed KBA is incorrect because RON standards require multi-factor authentication (both KBA and Credential Analysis) to be successful independently. Terminating the session for 72 hours is an arbitrary timeframe not found in the standard protocols, which generally allow a retake within 24 hours. Allowing three attempts at the same set of questions is incorrect because it compromises the security of the assessment by allowing the signer to potentially research or guess the answers from the previous attempt.

Takeaway: RON standards require a two-step identity verification process where a failed KBA attempt only allows for one retake using a completely different set of questions.

Correct: According to NNA standards and general notary law, a Notary Signing Agent must avoid the Unauthorized Practice of Law (UPL). This means they are prohibited from providing legal advice, interpreting the meaning of documents, or explaining the financial implications of loan terms. The NSA’s role is strictly limited to identifying the document (e.g., ‘This is the Notice of Right to Rescind’) and stating its general purpose (e.g., ‘It explains your right to cancel the transaction within three business days’). Any deeper inquiry must be handled by the lender or settlement agent.

Incorrect: Providing scripts that explain legal implications is still a form of providing legal advice and exceeds the scope of a notary’s authority. Using waivers does not grant a notary the legal right to practice law or provide financial consultations. Interpreting documents based on a borrower’s confusion is a violation of UPL, as the notary is not qualified or licensed to provide such interpretations, and documenting the violation in a journal does not make the act permissible.

Takeaway: A Notary Signing Agent must limit document descriptions to identification and general purpose to avoid the unauthorized practice of law.

Correct: According to NNA standards and the Notary Signing Agent Code of Conduct, selecting the type of notarial act is a legal determination that an NSA is not authorized to make. Doing so constitutes the unauthorized practice of law. The NSA must remain a neutral party and ensure the selection is made by the signer or the document’s originator to maintain compliance and professional ethics.

Correct: A Notary Public’s authority is strictly limited to the geographic boundaries of the state that issued their commission. By crossing into State B to perform a notarial act while only holding a commission in State A, the notary acted without legal authority. Furthermore, falsifying the venue on the certificate (stating State A when the act occurred in State B) is a fraudulent act. This jurisdictional breach renders the notarization invalid, which can lead to the Deed of Trust being rejected for recording or being deemed unenforceable in court.

Incorrect: The failure to update the journal is a procedural error, but it is subordinate to the fact that the notary had no legal standing to perform the act in that location at all. While the unauthorized practice of law (UPL) is a serious concern for NSAs, the primary violation here is jurisdictional authority rather than the provision of legal advice or document selection. Verifying a borrower’s employment status is not a standard requirement for a notarial act and does not address the legal validity of the seal or the jurisdiction of the commission.

Takeaway: A Notary Public’s commission is only valid within the borders of the commissioning state, and performing acts outside that jurisdiction invalidates the notarization and creates significant legal risk.

Correct: Notary Signing Agents have an ethical and often legal obligation to protect the Non-Public Personal Information (NPI) of all signers. Providing an entire journal to a title company would expose the private data of signers from unrelated transactions. Providing redacted or transaction-specific records is the standard professional way to comply with an audit while maintaining confidentiality and adhering to the NNA Code of Conduct.

Incorrect: Complying with the full audit request violates the privacy of unrelated signers and breaches the notary’s duty of confidentiality. Refusing all access is incorrect because title companies have a legitimate business interest in verifying the notarization of their own documents. Hiring a third-party auditor does not mitigate the privacy breach of exposing unrelated signer data to an unauthorized party without a legal mandate.

Takeaway: A Notary Signing Agent must protect the confidentiality of all signers by limiting journal access to only those entries relevant to the requesting party.