Eligibility Requirements for Using a Power of Attorney
Underwriting and Documentation Requirements | ||
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Eligible Transactions |
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Documentation Requirements | An agent under a POA may sign the note and/or security instrument on behalf of a borrower (as defined in the Glossary) if all of the following requirements are met:
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Additional Requirements |
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Ineligible Agents | Unless a person described below is a relative* of the borrower, none may serve as an agent except in accordance with a listed permitted exception. | |
Agent | Permitted Exceptions | |
Affiliate of lender | Transaction must meet the Additional Conditions below | |
Loan originator | ||
Affiliate of the loan originator | ||
Employee of the title insurance company | ||
Affiliate of the title insurance company or its employee (including, but not limited to, the title agency closing the loan) | ||
Lender (or employee of lender) | None | |
Property seller, or any person related to the property seller, including a relative or affiliate | ||
Any real estate agent with a financial interest in the transaction (or any person affiliated with such real estate agent) |
*A borrower’s relative includes any person defined as a relative in this Guide, or a person who is a fiancé, fiancée, or in a legally recognized mutual relationship with the borrower (however denominated under applicable local law).
For additional information, see B8-5-05, Requirements for Use of a Power of Attorney