Best Practices: Closing with a Power of Attorney

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Continuing our series of commonly asked questions at closing, we asked Millie Simmons, our Fulfillment Manager in Flower Mound, for advice on this question:

Millie, could you remind us about special considerations when closing with a Power of Attorney?

 

If your loan is closing with a Power of Attorney (POA), always make sure you have complied with investor requirements.  Some investors do not allow the use of a POA on specific transactions.  For example, Texas Home Equity Cash-out loans may never close with a POA.  In other cases, investors may require you to get pre-approval for use of the POA while others may require the lender to meet certain criteria to obtain a POA approval or require specific signature line verbiage for the final closing docs. 

To avoid post-closing delays, or possible reclosing, save yourself a redraw and double-check that you have met all POA requirements before closing the loan.  The FNMA selling guide provides an extensive overview of closing loans with a POA you can read here, but we strongly suggest you also check with your investor to insure you have also captured any overlays they may have.