Power Of Attorney (POA)

Can be used by any borrower involved in a loan transaction who is unable to be present to sign loan documents. If the borrower is unable to sign documents in person, mailing loan documents to another location should be considered instead of using a POA.  The POA must be a specific power of attorney that authorizes the agent to act on behalf of the principal only in connection with a specific transaction, which is described in the document. The POA must also be specific to the state requirements in which the subject property is located. The State of Alaska requires that we accept general powers of attorney (POA) within five business days of presentment for loan application and loan closing without allowing third parties to impose additional requirements when the statutory form or non-statutory form POA meets the following requirements:

  • Properly signed and acknowledged as required by applicable law
  • Meets state minimum requirements and grants borrowing/mortgaging authority to the attorney in fact

It is recommended the POA be prepared by the closing title company. Underwriters or closers may approve the Power of Attorney documentation prior to closing.

Conventional

  • POA at Loan Application
    • A borrower is on military service with the U.S. armed forces serving outside the U.S. or deployed aboard a U.S. vessel, as long as the power of attorney
      • Expressly states an intention to secure a loan on a specific property; or
      • Complies with requirements under the VA Lender's handbook relating to powers of attorney for VA-insured mortgage loans.
  • POA at Closing
    • If there is a hardship or emergency situation. A letter of explanation from the borrower, explaining the hardship or emergency is required.  The person acting as attorney-in-fact should have a familial, personal or fiduciary relationship with the Borrower, and should not be employed by or affiliated with any party to the loan transaction other than the Borrower.
    • A POA may not be used for Cash-out refinance 

FHA

  • POA at Loan Application:
    • For military personnel, a POA may only be used for one of the applications(initial or final), but not both:
      • When the service member is on overseas duty or on an unaccompanied tour; and
      • When the mortgagee is unable to obtain the absent borrower's signature on the application by mail or via fax; and
      • Where the attorney-in-fact has specific authority to encumber the property and obligate the borrower.
    • For incapacitated borrowers, a POA may only be used in the following cases:
      • A borrower is incapacitated and unable to sign the mortgage application; and
      • The incapacitated individual will occupy the property and the attorney-in-fact has specific authority to encumber the property and to obligate the borrower. Acceptable evidence includes a durable POA specifically designed to survive incapacity and avoid the need for court proceedings.
  • POA at Closing
    • Borrower may designate an attorney-in-fact to use a POA. None of the following may sign as attorney-in-fact:
      • Mortgagee, or any employee or affiliate
      • Loan originator, or employer or employee
      • Title insurance company providing the title insurance policy, the title agent closing the mortgage, or any of their affiliates
      • Any real estate agent or any person affiliated with such real estate agent

VA

  • POA at Loan Application and CLosing
    • VA requires the veteran's written consent to the specifics of the transaction. This requirement can be satisfied as either
    • A specific power of attorney or other document signed by the veteran, which encompasses the following:
      • Entitlement – a clear intention to use all or a specified amount of entitlement
      • Purpose – a clear intention to obtain a loan for purchase, construction or refinancing
      • Property Identification – identification of the specific property
      • Price and Terms – the sales price, if applicable, and other relevant terms of the transaction
      • Occupancy – the veterans' intention to use the property as a home to be occupied
    • Verify that the veteran is alive, and, if on active military duty, not missing in action (MIA).

USDA

  • POA at Loan Application:
    • For military personnel, a POA may only be used for one of the applications (initial or final), but not both:
      • When the service member is on overseas duty or on an unaccompanied tour; and
      • When the mortgagee is unable to obtain the absent borrower’s signature on the application by mail or via fax; and
      • Where the attorney-in-fact has specific authority to encumber the property and obligate the borrower.
    • For incapacitated borrowers, a POA may only be used in the following cases:
      • A borrower is incapacitated and unable to sign the mortgage application; and
      • The incapacitated individual will occupy the property and the attorney-in-fact has specific authority to encumber the property and to obligate the borrower. Acceptable evidence includes a durable POA specifically designed to survive incapacity and avoid the need for court proceedings.
  • POA at Closing:
    • For military personnel, a POA may only be used for one of the applications (initial or final), but not both:
      • When the service member is on overseas duty or on an unaccompanied tour; and
      • When the mortgagee is unable to obtain the absent borrower’s signature on the application by mail or via fax; and
      • Where the attorney-in-fact has specific authority to encumber the property and obligate the borrower.
    • A borrower is incapacitated and unable to sign the mortgage application; and
      • The incapacitated individual will occupy the property and the attorney-in-fact has specific authority to encumber the property and to obligate the borrower. Acceptable evidence includes a durable POA specifically designed to survive incapacity and avoid the need for court proceedings.