Power of Attorney
Newrez LLC "Newrez" Approved Correspondent Clients; effective immediately, Power of Attorney updates have been completed for release on May 31, 2023 as part of Underwriting Guide. Please use this announcement as guidance until all applicable underwriting guides are updated.
Military Personnel
A power of attorney may be used for all loan transactions, when a borrower is currently deployed or stationed overseas and is unable to sign documents or attend closing, per individual investor requirements.
Complete guidelines can be found in the Underwriting Guide, Chapter 9A Power of Attorney, 9A.2 Acceptable Use of Power of Attorney
Restrictions and Limitations
Restrictions were updated to reflect:
- Removed restriction for Power of Attorney may not be used when subject property is held in a trust
Complete guidelines can be found in the Underwriting Guide, Chapter 9A Power of Attorney,9A.3 Restrictions and Limitations
General Requirements
- Fannie Mae cash out refinance transactions, a power of attorney is not permitted.
- Freddie Mac cash out transactions, a power of attorney is permitted. Additional documentation is required including an acknowledgement with the borrower.
- FHA cash out refinance transactions, a power of attorney is not permitted.
- VA cash out refinance transaction, a power of attorney may only be used if the veteran borrower is on active duty.
Complete guidelines can be found in the Underwriting Guide, Chapter 9A Power of Attorney, 9A.4 General requirements in following sections:
- 4(a) Fannie Mae
- 4(b)(i) Freddie Mac Cash-out Refinance Transactions
- 5 FHA (Ginnie Mae)
- 6 VA (Ginnie Mae)
Smart Series
This section was renamed as Smart Series from Jumbo/Non-Agency
Complete guidelines can be found in the Underwriting Guide, Chapter 9A Power of Attorney, 9A.10 Smart Series