Eligibility Requirements for Using a Power of Attorney
| Underwriting and Documentation Requirements | ||
|---|---|---|
| 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