Power of Attorney

Overview

In a hardship or emergency situation, Pennymac will permit the use of a person acting as Attorney-in-Fact pursuant to authority granted by a borrower under a Power of Attorney (POA). The person acting as Attorney-in-Fact should have a familial, personal or fiduciary relationship with the borrower.

The Power of Attorney may be utilized for executions on loan documents in accordance to applicable state and/or federal laws.  

Types of POA Documents Acceptable for Purchase by Pennymac

• Durable Power of Attorney
  • Must survive the disability or incapacity of the principal.
  • Must contain language stating that the authority given remains in effect if the principal/grantor becomes incapacitated.  
• Military Power of Attorney
  • Must survive the disability or incapacity of the principal.
• Specific, Special or Limited Power of Attorney
  A specific, special or limited Power of Attorney is required on Conventional DU loans.
  • Contains authorization for the attorney-in-fact to perform specific functions related to the real estate financing and is specific to the subject property (references the subject via property address or legal description).

• General Power of Attorney
  A general Power of Attorney is only acceptable on Conventional LP loans, USDA loans, FHA loans, and VA loans. See VA Program Requirements below.
  • Must contain powers to enter in real-estate transactions with specific ability to mortgage, encumber and execute loan documents.
  • Must survive the disability or incapacity of the principal.
  • Must contain language stating that the authority given remains in effect if the principal/grantor becomes incapacitated.  

General Requirements

The following specifications must be met:

• Indicate clearly that the mortgagor is appointing an attorney in fact;
• Precisely identify who is being appointed;
• The appointed attorney in fact must be the same person signing the note and/or security instrument on behalf of the Principal;
• The Principal name must match the name on the note and/or security instrument;
• Be signed and dated by the borrower;
• Be notarized, either in person or via Remote Online Notarization (if executed outside the U.S. see Power of Attorney Executed Abroad section);
• Be effective prior to, or concurrent with the document date of the note;
• The Attorney in Fact may not be the lender, affiliate of the lender, employee of the lender or the lender's affiliates, originator, employer or employee of the employer of the originator, title company or any affiliate of such title company, real estate agent with a financial interest in the transaction or any person affiliated with such real estate agent;>
• Contain a statement of the grantor’s (borrower’s) name exactly as it will appear on all closing documents;
• Contain a recorder’s stamp if previously recorded;
• A separate, executed POA must exist for each borrower not present at closing.

Loan Application Requirements

Initial loan applications must be signed by the borrower unless;

• The borrower is on military service with the United States armed forces serving outside the United States or deployed aboard a United States vessel, as long as the power of attorney expressly states an intention to secure a loan on a specific property, or complies with the requirements under the VA Lender’s Handbook relating to the powers of attorney for VA-insured mortgage loans, or
• Such use is required of lender by applicable law
  Note: If a Power of Attorney is used because the lender determines such use is applicable by law, the lender must include in the mortgage file, a written statement that explains the circumstances and also may be required to provide supporting documentation. Such statement must be provided to the document custodian with the Power of Attorney.

Restrictions on the use of a Power of Attorney

A power of Attorney may not be utilized to sign a security instrument or note if no other borrower executed such loan documents in person and in the presence of a notary unless;

• The attorney in fact is the borrowers attorney at law
• The attorney in fact is the borrowers relative
  Note: Relative is defined as the borrower’s spouse, child, fiancé, fiancée, domestic partner or other dependent or any other individual who is related to the borrower by blood, marriage, adoption, or legal guardianship.

Title Company Approval

If the loan documents were signed by an attorney in fact, the Power of Attorney must be approved by the title company issuing the title policy. The title company must ensure the lien priority without exception to the POA.

Program Requirements

Ineligible Transactions

Powers of Attorneys are not acceptable for the following types of transactions:

• FNMA Conventional Cash-out Refinance transactions
• Inter-vivos Revocable Trust loans
• In conjunction with eNotes

VA Program Requirements

Pennymac will allow a veteran to use an attorney in fact to execute any document necessary to obtain a VA-guaranteed loan. All Pennymac general requirements must be met in addition to:

• Obtaining the veteran’s written consent to the specifics of the transaction (see VA Lender Handbook for specifics);
• At the time of closing, the lender must verify that the veteran is alive, and, if on active military duty, not missing in action (MIA) and make the following certification:
  • “The undersigned lender certifies that written evidence in the form of correspondence from the veteran or, if on active military duty, statement of his or her commanding officer (including statement of person authorized to act for said officer), affirmatively indicating that the veteran was alive and, if the veteran is on active military duty, not missing in action status on (date), was examined by the undersigned and that the said date is subsequent to the date the note and security instruments were executed on the veteran’s behalf by the attorney in fact.”

Signature Requirements

Documents executed by the attorney in fact must be signed according to the following:

Acceptable Signature Format

Jane Mac by John Mac, Attorney-in-Fact Jane Mac by John Mac, Attorney-in-Fact

John Mac as AIF for Jane Mac pursuant to POA dated XX-XX-XX Jane Mac

Jane Mac by John Mac AIF (or POA) Jane Mac

Jane Mac by John Mac AIF (or POA) Jane Mac, by John Mac as her Attorney-in-Fact (or POA)

John Mac, Attorney in Fact for Jane Mac Jane Mac by John Mac as her Attorney-in-Fact (or POA)

John Mac, AIF (or POA) Jane Mac

Jane Mac by John Mac * Jane Mac, by John Mac as her Attorney-in-Fact (or POA)

Jane Mac* Jane Mac, by John Mac as her Attorney-in-Fact (or POA)

*Pennymac does not require the signature line to reflect AIF or POA, however it is strongly preferred.

Power of Attorney Executed Abroad

Documents can be executed and notarized in an Embassy, Consulate, or on a Military Base. All requirements set forth by the State Department for overseas Citizens Services and the Uniform Code of Military Justice must be met.

Delivery Requirements

A copy of the applicable power of attorney, if an attorney in fact signed the mortgage note (or any other acceptable alternative for the mortgage note) and/or security instrument on an individual’s behalf. If applicable law requires an original power of attorney for enforcement or foreclosure purposes, the document custodian must hold the original rather than the copy. If applicable law requires recordation of the power of attorney, it must be recorded.