21 Ethics & Borrower Privacy Practice Questions & Answers

Every Ethics & Borrower Privacy practice question from the Notary Signing Agent Practice Test, with the correct answer and a short explanation.

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1. During a refinance signing at the borrower's kitchen table, the borrower's adult daughter asks the signing agent what her mother's new monthly payment will be. What does the signing agent's duty of confidentiality require?
- A.Redirect the question to the borrower, who decides what her family is told✓ Answer
- B.Share the figure once the borrower nods her approval across the table
- C.State the payment amount but withhold the interest rate and the loan balance
- D.Answer from the payment schedule, since a household member counts as a party
Confidentiality runs to anyone who is not directly a party to the transaction, and an adult child in the house is not a party even though she is family. The agent therefore does not disclose the terms; the borrower herself may share whatever she wishes with her daughter.
Source: SPW Notary Signing Agent Code of Conduct, Nondisclosure of Signer InformationReport a problem with this question
2. After a closing, a signing agent posts online: 'Just closed a loan for a well-known local restaurant owner - biggest package I have ever printed.' No name or address appears in the post. How should this post be judged?
- A.Acceptable, because the assignment had already concluded when it posted
- B.Improper, because the contracting company did not approve the wording
- C.Improper, because the transaction was described to people outside it✓ Answer
- D.Acceptable, because the post names neither the borrower nor the address
The duty not to disclose a signing covers the fact of the transaction itself, not just names and numbers, and social media reaches an audience of non-parties. A description detailed enough to identify the borrower to a local reader breaches confidentiality even with the name removed.
Source: SPW Notary Signing Agent Code of Conduct, professional communicationsReport a problem with this question
3. A signing agent hands her journal to a borrower for a signature. The facing pages hold completed entries from another client that morning. What is the correct handling?
- A.Black out the earlier entries with a marker so that nothing shows
- B.Omit the journal signature line, since privacy outweighs the entry
- C.Slide a privacy guard over completed entries before passing it✓ Answer
- D.Let the signer page back to her own entry from an earlier signing
A signing agent takes reasonable steps to keep one signer from viewing entries already made for other signers, and a paper cover or journal privacy guard does exactly that. Defacing entries or skipping the required entry destroys the record the journal exists to preserve.
Source: SPW Notary Signing Agent Code of Conduct, Journal EntriesReport a problem with this question
4. While the borrower steps out of the room to find his reading glasses, the signing agent reads through the income and credit pages in the loan package out of curiosity. How is this conduct judged?
- A.Permitted, because the agent lawfully has the package in hand already
- B.Improper, because review is limited to what the assignment itself requires✓ Answer
- C.Permitted, because knowing the file helps present the documents faster
- D.Improper, because the borrower had not yet signed the privacy notice page
Lawful possession of the package is not permission to read it. The agent examines closing documents only as far as needed to learn the requirements of the assignment and to complete the journal, so browsing income or credit data for interest is a breach of confidentiality.
Source: SPW Notary Signing Agent Code of Conduct, Scrutiny of DocumentsReport a problem with this question
5. A signing agent is running between two appointments. Her husband offers to log in to the title company's portal, download the package and print it so it is ready when she arrives. What should she do?
- A.Let him print it once he has signed a confidentiality pledge for the file
- B.Print it at a copy shop, where the staff handle the file under her watch
- C.Print it herself, because downloading and printing cannot be handed off✓ Answer
- D.Let him print it, since the package never leaves the agent's own household
The signing agent must personally download and print every closing document and may not assign that job to anyone else, including a spouse, an assistant or a print shop. The rule exists because each additional person who touches the file is an unscreened point of exposure.
Source: SPW Notary Signing Agent Code of Conduct, Printing of DocumentsReport a problem with this question
6. A shipped closing package arrives at the signing agent's door with the envelope seal split open and several pages sticking out. What is the required response?
- A.Photograph the damage and proceed, since no page appears to be missing
- B.Reseal the envelope and note the condition on the invoice after the signing
- C.Refuse the delivery and ask the carrier to send the package back for repacking
- D.Secure the documents and report the condition to the contracting company at once✓ Answer
Packages must be sealed on receipt and on delivery, and any circumstance suggesting the contents were compromised is reported to the contracting company immediately. Prompt reporting lets the lender decide whether the borrower's data was exposed and whether documents must be reissued.
Source: SPW Notary Signing Agent Code of Conduct, Compromised DocumentsReport a problem with this question
7. A signing agent has printed a package for an evening appointment and wants to run personal errands during the afternoon. How must the package be handled in the meantime?
- A.Dropped early in the borrower's mailbox so it waits at the house
- B.Left with a trusted neighbor so it is not sitting inside a vehicle
- C.Kept under the agent's personal control or lock and key until signing✓ Answer
- D.Locked inside the car trunk while the afternoon errands are run
Closing documents stay under the agent's personal control or under lock and key from the moment they are printed until secure delivery. A parked car, a neighbor's hands and an unattended mailbox are all places where the borrower's data can be taken without anyone noticing.
Source: SPW Notary Signing Agent Code of Conduct, Security of DocumentsReport a problem with this question
8. A borrower signs part of the package, then stops and asks to postpone. The contracting company cancels the appointment. What does the agent do with the paperwork?
- A.Shred the partially signed pages and return the untouched documents
- B.Hand the whole package to the borrower, who signed part of it already
- C.Keep the package a week in case the closing is quickly rescheduled
- D.Return every document, signed and unsigned, as the company instructs✓ Answer
When an assignment is postponed or cancelled, all executed and unexecuted documents go back according to the contracting company's or closing agent's instructions. Destroying or keeping documents on the agent's own initiative removes them from the chain of custody the lender relies on.
Source: SPW Notary Signing Agent Code of Conduct, Return of DocumentsReport a problem with this question
9. At the end of a signing the borrower asks the agent to email him the PDF of the whole package for his own records. What is the correct course of action?
- A.Send only the Closing Disclosure, a copy he is entitled to receive
- B.Decline the request and suggest he photograph the pages himself
- C.Send the file from an encrypted email account once the signing ends
- D.Decline the request and tell the contracting company that he asked✓ Answer
The agent does not comply with a signer's request for electronic closing documents, but the request itself is reported to the contracting company so the lender or title company can send copies through its own channel. The answer has two halves; refusing alone is incomplete.
Source: SPW Notary Signing Agent Code of Conduct, Request for Electronic DocumentsReport a problem with this question
10. A newer signing agent asks a colleague for her portal username and password so she can pull down packages while the colleague is driving. How should the colleague respond?
- A.Withhold the login and ask the company to assign her the signing✓ Answer
- B.Share the login after the contracting company approves it by email
- C.Share the login for this one file and change the password afterward
- D.Withhold the login but forward her the downloaded package by email
Logon credentials and website access instructions for closing documents are never shared with anyone, and a substitute agent may work a file only when the contracting company assigns it. Shared credentials also destroy the audit trail showing who retrieved a borrower's file.
Source: SPW Notary Signing Agent Code of Conduct, Access Instructions; (substitution requires approval)Report a problem with this question
11. A signing agent has shipped the executed package back and the assignment is finished. The downloaded PDF is still sitting in the Downloads folder of her home computer. What should she do with it?
- A.Delete the file from the computer once the assignment is over✓ Answer
- B.Archive the file until the signing company has paid the invoice
- C.Archive the file for three years as proof that the work was done
- D.Delete the file after the lender confirms that the loan has funded
Electronic closing documents are permanently erased from the agent's personal or shared computer immediately upon conclusion of the assignment. Keeping the file for funding, records or billing leaves the borrower's nonpublic personal information on a machine the lender cannot secure.
Source: SPW Notary Signing Agent Code of Conduct, Deletion of Electronic DocumentsReport a problem with this question
12. Which item in a residential closing package is nonpublic personal information as the Notary Signing Agent Code of Conduct defines that term?
- A.The name of the title company shown on the closing statement
- B.The borrower's name paired with her driver's license number✓ Answer
- C.The county and state where the deed of trust will be recorded
- D.The corporate address of the lender printed on the mortgage
The definition covers a customer's first name or initial and last name combined with a Social Security number, driver's license or state ID number, or a credit, debit or other financial account number. Recording data and company addresses are public, so they fall outside it.
Source: SPW Notary Signing Agent Code of Conduct, Definitions, Non-Public Personal Information; Gramm-Leach-Bliley Act Privacy RuleReport a problem with this question
13. Three pages misprinted during printing show the borrower's Social Security number and bank account number. How should the agent dispose of them, and under which federal rule?
- A.Return them, as the Truth in Lending Act requires copies be retained
- B.Shred them, as the FACTA Disposal Rule requires for consumer data✓ Answer
- C.Discard them, as the USA PATRIOT Act covers only identity screening
- D.Recycle them, as RESPA treats settlement drafts as public records
The FACTA Disposal Rule requires reasonable measures against unauthorized access when consumer report information is discarded, which means shredding, burning or pulverizing paper and destroying electronic media. Intact pages in a recycling bin are readable by anyone who reaches in.
Source: Fair and Accurate Credit Transactions Act (FACTA) Disposal Rule, 16 CFR Part 682Report a problem with this question
14. After the borrower signs the promissory note, the signing agent photographs the signed page with her phone so she has proof the work was completed. How is this judged?
- A.Improper, since it creates an extra unsecured copy of borrower data✓ Answer
- B.Improper, since photographs of a note need the lender's prior consent
- C.Acceptable, since the image proves the signature was actually obtained
- D.Acceptable, since the picture stays on a phone protected by a passcode
A phone photo puts nonpublic personal information onto a device that syncs to cloud backups and travels everywhere, outside the secure custody the borrower's data is owed. The journal entry and the contracting company's own records, not personal images, document the work.
Source: SPW Notary Signing Agent Code of Conduct, security and transmission of documents and NPPIReport a problem with this question
15. A signing service offers an assignment in which the borrower's loan officer is the signing agent's brother-in-law. What should the agent do?
- A.Decline it, because any fee earned on the file would be a kickback
- B.Accept it, provided the brother-in-law stays away from the appointment
- C.Accept it, provided the borrower is told about the family connection first
- D.Decline it, because a close relative is providing services in the deal✓ Answer
An agent performs no signing service in a transaction where a close relative is the loan officer, real estate agent, mortgage broker or other settlement services provider, and in-laws are within the definition of close relative. Disclosure does not cure the conflict.
Source: SPW Notary Signing Agent Code of Conduct; Definitions, Close RelativeReport a problem with this question
16. A signing agent is a part owner of the limited liability company that owns the rental property now being refinanced, and the contracting company offers her the signing. What is required?
- A.Take the assignment but have a co-owner present the documents instead
- B.Turn the assignment down, since notarial acts cannot be done for an LLC
- C.Turn the assignment down, since she holds an interest in the transaction✓ Answer
- D.Take the assignment and note her ownership stake in the journal entry
Impartiality fails when the agent, directly or indirectly, is a party to the transaction or stands to benefit from it, and an ownership share in the borrowing entity is exactly that. Noting the interest in the journal does not restore the neutrality the role requires.
Source: SPW Notary Signing Agent Code of Conduct, impartiality and appearance of conflictReport a problem with this question
17. A mortgage broker tells a signing agent he will pay her a bonus for every borrower she sends to him. How should she treat the offer?
- A.Refuse it, since the bonus must be split with the closing agent first
- B.Refuse it, since paying for referred settlement business is unlawful✓ Answer
- C.Accept it, since a referral is separate from the signing service fee
- D.Accept it, once the bonus is listed on her invoice to the company
A signing agent charges and receives only the fee for signing services and accepts no referral fee, rebate, fee split or other unearned payment, which also tracks the federal prohibition on paying for referrals of settlement service business. Invoicing it does not make it lawful.
Source: SPW Notary Signing Agent Code of Conduct; RESPA, 12 U.S.C. 2607Report a problem with this question
18. A borrower greets the signing agent at the door with 'You're the closer from the bank, right?' How should the agent identify himself?
- A.Explain that he is a notary hired to conduct the signing appointment✓ Answer
- B.Explain that he is the title company's closing officer for this file
- C.Agree, since the agent is acting for the lender during the appointment
- D.Agree, but add that questions on terms go to the loan officer instead
An agent never misrepresents his background, role or authority, and letting a borrower believe he speaks for the lender or the title company invites reliance he cannot lawfully support. He states plainly that he is a notary engaged to conduct the signing, and shows photo identification.
Source: SPW Notary Signing Agent Code of Conduct, identifying oneself to the signerReport a problem with this question
19. A signing agent is offered an assignment and, on seeing the borrower's name and neighborhood, would rather not take a signing with a family of that background. What is the professional obligation?
- A.Accept the assignment but ask the company for a higher travel fee
- B.Accept the assignment and conduct it as she would any other signing✓ Answer
- C.Decline the assignment and give the company a scheduling conflict
- D.Decline the assignment and tell the company her real reason for it
Impartiality and professional conduct require that assignments be accepted and performed without regard to a signer's race, national origin, religion or similar characteristic; the borrower's identity is not a permissible ground for refusing or repricing the work. A pretextual excuse is still discrimination.
Source: SPW Notary Signing Agent Code of Conduct, impartiality and, professional conduct toward signersReport a problem with this question
20. Traffic will make a signing agent late. Her contracting company's guidelines require notice at least 30 minutes before the scheduled time when the agent cannot arrive punctually. What should she do?
- A.Notify the contracting company after arriving at the borrower's home
- B.Call another agent nearby and ask her to cover the appointment now
- C.Call the borrower to move the appointment to the following morning
- D.Notify the borrower and the contracting company inside that window✓ Answer
Punctuality protects the borrower's day, so late arrival is reported to both the signer and the contracting company within the notice window the guidelines set. Rescheduling with the borrower directly, or sending a substitute without approval, are both outside the agent's authority.
Source: SPW Notary Signing Agent Code of Conduct, late arrival notice; no rescheduling with the signer; substitutionReport a problem with this question
21. Back at home the agent realizes she never completed the notarial certificate on the deed of trust, and the sealed package is already waiting for pickup. What should she do?
- A.Ship the package on and mention the gap only if the lender asks later
- B.Report the omission to the contracting company and follow its instructions✓ Answer
- C.Complete the certificate now and date it the day of the appointment
- D.Mail a signed loose certificate for the lender to attach to the deed
Errors are reported honestly and promptly so the company can arrange a correction, typically a new appointment with the signer present. Backdating a certificate, staying silent, or mailing a loose certificate to be attached to a document are each independent violations.
Source: SPW Notary Signing Agent Code of Conduct, no pre- or post-dating; no loose certificates, reporting developmentsReport a problem with this question

Practice questions based on the Notary Signing Agent Code of Conduct and standard residential mortgage closing documents. This site is not affiliated with or endorsed by the National Notary Association. IMPORTANT: the real certification exam also covers your own state's notary laws and procedures, and this bank deliberately does not — notary commissioning, fees, journal and seal requirements, acceptable identification and remote online notarization are set state by state and vary widely. Study your state's notary handbook alongside this, and see our Notary Public practice test for the notarial acts themselves. Being a certified signing agent does not by itself authorize you to notarize anywhere; your state commission does. About signing agent certification →

1. During a refinance signing at the borrower's kitchen table, the borrower's adult daughter asks the signing agent what her mother's new monthly payment will be. What does the signing agent's duty of confidentiality require?

2. After a closing, a signing agent posts online: 'Just closed a loan for a well-known local restaurant owner - biggest package I have ever printed.' No name or address appears in the post. How should this post be judged?

3. A signing agent hands her journal to a borrower for a signature. The facing pages hold completed entries from another client that morning. What is the correct handling?

4. While the borrower steps out of the room to find his reading glasses, the signing agent reads through the income and credit pages in the loan package out of curiosity. How is this conduct judged?

5. A signing agent is running between two appointments. Her husband offers to log in to the title company's portal, download the package and print it so it is ready when she arrives. What should she do?

6. A shipped closing package arrives at the signing agent's door with the envelope seal split open and several pages sticking out. What is the required response?

7. A signing agent has printed a package for an evening appointment and wants to run personal errands during the afternoon. How must the package be handled in the meantime?

8. A borrower signs part of the package, then stops and asks to postpone. The contracting company cancels the appointment. What does the agent do with the paperwork?

9. At the end of a signing the borrower asks the agent to email him the PDF of the whole package for his own records. What is the correct course of action?

10. A newer signing agent asks a colleague for her portal username and password so she can pull down packages while the colleague is driving. How should the colleague respond?

11. A signing agent has shipped the executed package back and the assignment is finished. The downloaded PDF is still sitting in the Downloads folder of her home computer. What should she do with it?

12. Which item in a residential closing package is nonpublic personal information as the Notary Signing Agent Code of Conduct defines that term?

13. Three pages misprinted during printing show the borrower's Social Security number and bank account number. How should the agent dispose of them, and under which federal rule?

14. After the borrower signs the promissory note, the signing agent photographs the signed page with her phone so she has proof the work was completed. How is this judged?

15. A signing service offers an assignment in which the borrower's loan officer is the signing agent's brother-in-law. What should the agent do?

16. A signing agent is a part owner of the limited liability company that owns the rental property now being refinanced, and the contracting company offers her the signing. What is required?

17. A mortgage broker tells a signing agent he will pay her a bonus for every borrower she sends to him. How should she treat the offer?

18. A borrower greets the signing agent at the door with 'You're the closer from the bank, right?' How should the agent identify himself?

19. A signing agent is offered an assignment and, on seeing the borrower's name and neighborhood, would rather not take a signing with a family of that background. What is the professional obligation?

20. Traffic will make a signing agent late. Her contracting company's guidelines require notice at least 30 minutes before the scheduled time when the agent cannot arrive punctually. What should she do?

21. Back at home the agent realizes she never completed the notarial certificate on the deed of trust, and the sealed package is already waiting for pickup. What should she do?