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 ensure you have also captured any overlays they may have.