source:
  type: guide
  id: fnma-sel-b8-5-05
  authority: Fannie Mae Selling Guide B8-5-05 — Requirements for Use of a Power of
    Attorney
  description: Fannie Mae Selling Guide B8-5-05 — Requirements for Use of a Power
    of Attorney.
  coverage_tier: operative
obligations:
- id: fnma-sel-b8-5-05-full
  canonical_id: fnma-sel-b8-5-05-full
  section: Fannie Mae Selling Guide B8-5-05 — Requirements for Use of a Power of Attorney
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B8-5-05 — Requirements for Use of a Power
      of Attorney
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B8-5-05, Requirements for Use of a Power of Attorney (10/05/2022)
      Introduction This topic contains information on requirements for use of a power
      of attorney, including: Overview General Exception to Power of Attorney Requirements
      Eligibility Requirements for Using a Power of Attorney Overview A power of attorney
      (POA) is a legal document giving one person (described below as the “agent”)
      the power to legally bind another person. Loans with documentation executed
      by an agent on behalf of the borrower under a POA are eligible for delivery
      to Fannie Mae if all requirements referenced in this Guide are met. When title
      to mortgaged property is held by a trustee under an inter vivos revocable trust,
      loan documentation Published May 6, 2026 910 may not be executed using a POA
      granted by such trustee unless, the related trust instrument expressly authorizes
      the trustee to use a POA to delegate powers to an agent, or the agent under
      the POA is the borrower creating such inter vivos revocable trust. General Exception
      to Power of Attorney Requirements If a lender determines that it is required
      by applicable law to accept a POA presented by a borrower, none of the following
      requirements for, or limitations on, the use of a POA apply. In such cases,
      the lender must include a written statement in the loan ﬁle that explains that
      determination. Such written statement must be provided to the document custodian
      with the POA. Eligibility Requirements for Using a Power of Attorney Underwriting
      and Documentation Requirements Eligible Transactions • Purchase • Limited cash-out
      reﬁnance Documentation Requirements An agent under a POA may sign the note and/or
      security instrument on behalf of a borrower (as deﬁned in the Glossary) if all
      of the following requirements are met: • The lender obtains a copy of the POA.
      • The name(s) on the POA match the name(s) of the person on the relevant loan
      document. • The POA is dated such that it was valid at the time the relevant
      loan document was executed. • The POA is notarized. • The POA must reference
      the address of the subject property. Note: See B1-1-01, Contents of the Application
      Package, for additional information. Additional Requirements • In jurisdictions
      where a POA used for a signature on a security instrument must be recorded with
      the security instrument, the lender must ensure that recordation has been eﬀected.
      • If applicable law requires an original POA for enforcement or foreclosure
      purposes, an original must be forwarded to the document custodian. • If there
      is more than one borrower, each may execute the note and/or security instrument
      using a POA that complies with this section. Published May 6, 2026 911 Underwriting
      and Documentation Requirements Ineligible Agents Unless a person described below
      is a relative* of the borrower, none may serve as an agent except in accordance
      with a listed permitted exception. Agent Permitted Exceptions Aﬃliate of lender
      Transaction must meet the Additional Conditions below Loan originator Aﬃliate
      of the loan originator Employee of the title insurance company Aﬃliate of the
      title insurance company or its employee (including, but not limited to, the
      title agency closing the loan) Lender (or employee of lender) None Property
      seller, or any person related to the property seller, including a relative or
      aﬃliate Any real estate agent with a ﬁnancial interest in the transaction (or
      any person aﬃliated with such real estate agent) *A borrower’s relative includes
      any person deﬁned as a relative in this Guide, or a person who is an individual
      engaged to marry the borrower, or is in a legally recognized mutual relationship
      with the borrower (however denominated under applicable local law). Additional
      Conditions The following are the additional conditions that must be met to qualify
      for a permitted exception in the table above. The POA expressly states an intention
      to secure a loan not to exceed a stated amount from a named lender on a speciﬁc
      property. Published May 6, 2026 912 The POA expressly authorizes the agent to
      execute the required loan documents on behalf of the borrower. In a recorded,
      interactive session conducted via the internet, and to the satisfaction of the
      agent, the borrower must conﬁrm their identity; after reviewing the required
      loan documents, reaﬃrm their agreement to the terms and conditions of the note
      and security instrument evidencing the transaction; and reaﬃrm their agreement
      to the execution of the loan documents by the agent. At Fannie Mae’s request
      the lender must produce a recording and other documentary media memorializing
      the entirety of the interactive session. Such request may be at any time during
      the term of the related loan. The lender must comply within a commercially reasonable
      time following such request and without additional expense to Fannie Mae. If
      the agent is an employee of the title insurer or is an employee of the policy-issuing
      agent of the title insurer, then unless unavailable under applicable law, such
      title insurer must issue a closing protection letter (or similar contractual
      protection) for the transaction for the policy-issuing agent. Recent Related
      Announcements The table below provides references to recently issued Announcements
      that are related to this topic. Announcement Issue Date Announcement SEL-2022-09
      October 05, 2022 Announcement SEL-2021-02 March 03, 2021 Announcement SEL-2019-05
      June 05, 2019 Chapter B8-6, Mortgage Assignments Introduction This chapter describes
      Fannie Mae requirements related to mortgage assignments. Published May 6, 2026
      913'
  judgment: false
