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Power
of Attorney Checklist Date_____________
Branch Number________ From__________________________________
__ Ext._____________
Borrower____________________________________________________
Loan Number_________________________
Loan Type:
q FHA
q
Conventional q
VA*
Loan Purpose: q
Purchase q
Refinance Power
of Attorney Type: q General
q Specific
q Durable *A Power of Attorney
used in a VA loan transaction for the veteran-borrower must contain language
specifically granting the Attorney-in-Fact (Agent) authority to use the
Principal’s VA eligibility (i.e., "authority to utilize my eligibility
for VA Guaranty"). If the POA
does not contain this language, the branch must obtain a written statement
from the Principal that specifically gives the Attorney-in-Fact (Agent) the
authority to utilize the Principal’s eligibility for VA Guaranty.”
1. Is this a Specific POA? If no, the POA is unacceptable for FHA loans, and any cash-out,
home equity or purchase money loan. CHL prefers a Specific POA on all
loans to ensure the Principal is aware of how the Attorney-in-Fact (or Agent) is
exercising his or her authority. However,
for Conventional and VA rate/term refinances, a General POA may be used if the
investor will accept a General POA. q Yes q No 2. Is the POA executed by the Principal? If no, the POA is
unacceptable. q Yes q No 3. Is the POA dated? If
no, the POA is unacceptable. q Yes q No 4. Is the Notary Public Acknowledgement complete and the
Notary's commission current? If no, the POA is unacceptable. q Yes q No 5. Was the notary completed in a foreign country?
If yes, the document must have been acknowledged before a consular
officer of the q Yes q No 6.
Is this a Military POA? If yes, the document must have been acknowledged
before either a notary public or an officer in the office of the Judge Advocate
General. The acknowledging
officer’s name and rank must be printed legibly beneath his/her signature.
Otherwise the POA is unacceptable. q Yes q No 7. Does the POA include language that entitles the
Attorney-in-Fact (or Agent) to execute, sign, and deliver a mortgage, deed of
trust for real property and “hypothecate” (or pledge) property?
If no, the POA is unacceptable. q Yes q No 8. Has the POA been recorded? If no, it must be recorded. 9. Has a revocation of the POA been recorded? If yes, the
POA is unacceptable. q Yes q No 10.
Is the Principal a veteran? If
yes, the spelling of the name must match the VA Guaranty, the
POA must have the required VA Guaranty verbiage, and you must have the Alive and
Well Statement. If the POA does not
have the required VA Guaranty verbiage, you must have a statement from the
Principal giving the Attorney-in-Fact (or Agent) the authority to use the VA
Guaranty. q Yes q No 11.
Does the POA have a Durability Clause?
If no, request a physician’s letter
dated the same day as closing confirming that the Principal has not become
physically or mentally disabled or incapacitated. (If there is no durability
clause and the Principal becomes disabled or incapacitated prior to closing,
this will terminate the POA and make the signatures invalid.).
q Yes q No 12.
If there is no Durability Clause, do you
have knowledge of the Principal becoming physically or mentally disabled or
incapacitated after signing the POA? If
yes, the POA is unacceptable. q Yes q No 13.
Do you have knowledge of the Principal’s death?
If yes, the POA is unacceptable. POAs
terminate upon the death of the Principal. q Yes q No 14.
Will the closing agent or attorney be instructed on how the
Attorney-in-Fact (or Agent) must sign the loan documents?
The Borrower’s name must be printed below the signature line. The
signature must read, “Joe Smith by Kathy
Smith, his attorney-in-fact.” q Yes q No
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Disclosure
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