On July 13, 2017 (revised July 24, 2017), we posted on the firm’s website Legislative Update II summarizing the new requirements enacted into law by House Bill 1974 (click here) and Senate Bills 39 and 1193 (click here and here), which are effective September 1, 2017, that substantially affect durable powers of attorney under Chapters 751 and 752 of the Estates Code. If you have not read Legislative Update II, we advise that you do so before September 1, 2017, because it details important new requirements regarding the acceptance of or refusal to accept durable powers of attorney. In addition to Legislative Update II, this follow-up memorandum provides specific guidance to mortgage lenders and originators (herein “mortgage lender”) using durable powers of attorney in the origination of residential mortgage loans. The following apply to a mortgage lender presented with and asked to accept a durable power of attorney by the principal or the agent authorized to act under the power of attorney.
