We wanted to let you know that on March 31, 2020, Fannie Mae updated Lender Letter (LL-2020-03) to include new requirements and flexibility in the use of Powers of Attorney (“POA”) in purchase and limited cash-out refinance transactions. Fannie Mae originally issued the Lender Letter on March 23, 2020 to address industry questions and concerns due to COVID-19 (coronavirus). We recommend you review the entire Lender Letter as in addition to the new policies affecting POAs, it contains several new underwriting requirements, expands the permissible use of remote online notarization and addresses title policy concerns, among other issues.
Fannie Mae Lender Letter – Ll-2020-03:
Fannie Mae Selling Guide – B8-5-05 – Requirements for Use of Poa: