Fannie Mae Selling Guide B8-5-06 prohibits the use of a power of attorney to sign the security instrument or note on cash-out refinances and Texas Section 50(a)(6) mortgages.
Two warnings have been added to ConformX Closing packages when “Investor Institution ID” (field 18308) is FNMA and “Power of Attorney (POA) on Loan” (field 58513) is Yes:
- If “Is this a Texas Home Equity Section 50(a)(6) loan?” is Yes, this warning text will display:
You have selected a FNMA Texas 50(a)(6) loan with a power of attorney. FNMA does not permit the use of a power of attorney on Texas 50(a)(6) loans. See FNMA Selling Guide B8-5-06.
- If “Loan Purpose” (field 5591) is CashOutOther, and “Is this a Texas Home Equity Section 50(a)(6) loan?” is No, this warning text will display:
You have selected a FNMA cash-out refinance with a power of attorney. FNMA does not permit the use of a power of attorney on cash-out refinances. See FNMA Selling Guide B8-5-06.
This change was effective May 27, 2015. If you have any questions or concerns about this change please contact Client Support at 1.800.497.3584.
May 27, 2015
TW 83410