If applicable law requires acceptance of a power of attorney, do the provisions of the Selling Guide and Lender Letter LL-2020-03, Impact of COVID-19 on Originations on powers of attorney apply?
Under Selling Guide B8-5-05, Requirements for the Use of a Power of Attorney, and as noted in LL-2020-03, requirements of applicable law regarding a lender’s obligation to allow use of a power of attorney always have priority over the terms of Fannie Mae policy. If a power of attorney is used because the lender determines such use is required by applicable law, the lender must include in the mortgage loan file a written statement that explains the circumstances. Such statement must be provided to the document custodian with the power of attorney.
For more information, refer to the published Lender Letter LL-2020-03, Impact of COVID-19 on Originations.