FAQ – Can I Close My Mortgage Loan Using a Power of Attorney (POA)?

faqUnder normal circumstances, lenders require that all parties to a mortgage agreement be present in person at settlement to sign their loan documents. However, there can be very legitimate circumstances under which it isn’t possible for the borrower to be present

Although every lender has a different policy, at AES Lending, our policy is as follows:

All POAs are reviewed by the Director of Operations.  For a POA to be reviewed, the following is required:

  • The POA itself must be reviewed to compare the signatures vs. the signatures on the application disclosures.
  • Without the disclosures, the signatures on the documents cannot be compared for accuracy. In other words, the person granting POA must have signed the initial loan disclosures, a POA is not allowed to sign the application or the purchase agreement.
    • The application and Purchase Agreement (if applicable) must be signed by all parties of the loan .
  • An unexecuted POA cannot be reviewed.
  • All signatures on the POA must be notarized and the POA must be reviewed by a Manager or above.
    • Signatures on the POA must match signatures in the file to satisfaction.
      • A fully executed letter must accompany the POA explaining why the POA is needed.  A “hardship” must exist for one of the borrowers not to be present at the closing.
      • The transaction must be a purchase or rate/term refinance only. Cash-out refinances and bridge loans are only allowed with a Military Durable POA.
      • Property must be an owner occupied principle residence or second home. No exceptions for investment properties.
      • The POA must be specific to the subject loan indicating property address unless it is a Military Durable POA, which does not have to indicate the specific property.
      •  In addition, the borrowers must provide a written explanation as to why a POA is being used.
        • There must be more than one borrower on the loan and at least one borrower present at the closing.
        • POA is not allowed for single borrower transactions.
        • The title policy must not make any exceptions based upon the use of the Power of Attorney.