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, what are the requirements for closing when using a Power of Attorney?
When closing occurs with the use of a Power of Attorney for a borrower or non-borrowing signor, you must ensure you have met the requirements for use of a Power of Attorney according to the type of loan and investor. Certain individuals are prohibited from acting as Power of Attorney to the transaction. Fannie Mae and Freddie Mac both give great guidance on who may or may not act as Power of Attorney:
FNMA: https://selling-guide.fanniemae.com/1033001671
FHLMC: https://guide.freddiemac.com/app/guide/section/6301.4
FHA and VA transactions closing with the use of a Power of Attorney also have specific requirements that must be met. Make sure you are meeting their requirements by checking the Lender’s Handbook for eligible transactions:
FHA: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh (Section II, ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT- Chapter 6(a)(xii)(A)
VA: https://www.benefits.va.gov/warms/pam26_7.asp (Chapter 9, Topic 8, see page 9-14)