Texas Home Equity Loans: Our Attorneys Answer Your Top 5 Questions

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We’re tackling your top 5 questions about Texas Home Equity Loans.  Here’s #5:

5.  May a Power of Attorney be used for a Texas Home Equity Loan?

It depends. Per the Texas Supreme Court, a power of attorney may only be used for a 50 (a) (6) loan if the power of attorney was executed at an office of a title company, an office of an attorney-at-law, or at the office of the lender. A power of attorney not executed at one of these locations may not be used. The Texas Administrative Code also notes that a lender may rely on an established system of procedures to evidence the location of execution. Examples provided include an affidavit of a witness present at the execution of the power of attorney or a statement within the power of attorney that acknowledges the date and place of execution. Agency and investor requirements will also need to be checked. For example, Fannie Mae does not permit the use of a power of attorney for their cash-out refinance program.