Closing · Fannie Mae B8-5-05Power of attorney at closing: who can sign for the buyer

A power of attorney (POA) lets one person – the agent or attorney-in-fact – legally bind another. On a Fannie Mae loan, an agent may sign the note and mortgage for a borrower on a purchase or a limited cash-out refinance if the lender has a copy of the POA, the names on the POA match the loan documents, it was valid when the documents were signed, it is notarized and it references the subject property address. Where the POA must be recorded with the mortgage, it is; if law requires the original for enforcement, the original goes to the document custodian. Each borrower may use a POA. Unless they are the borrower's relative (including a fiancé(e) or legally recognized partner), the following cannot be the agent: the property seller or anyone related to or affiliated with the seller, a real estate agent with a financial interest in the transaction, and the lender or its employees. The loan originator, an affiliate of the lender, and the title company's employees can serve only under extra conditions – a POA naming the lender, the property and a maximum loan amount, and a recorded online session in which the borrower confirms identity and reaffirms the loan terms. If the lender determines the law requires it to accept a POA, these limits do not apply and the lender records why. A trustee of a revocable trust may use a POA only if the trust allows it or the agent is the person who created the trust.