The last time we talked about power of attorney was during the fraud series and how to safeguard seniors from friends and family that may take out a reverse mortgage without the borrower’s knowledge. But here are some facts that will be helpful for you to know when using a Power of Attorney.
Power of Attorney can only be used for 2 reasons. First, when the customer cannot sign the loans due to physical or mental inability. In this situation, a doctor’s note must be obtained stating that the borrower cannot sign due to either mental or physical inability. The note must also state the date that the borrower came into their care and their debilitating condition. In this case the borrower does not need to complete HECM counseling and the POA must attend on the borrower’s hehalf.
The second reason a power of attorney can be used if it is more convenient for the power of attorney to sign because the borrower chooses not to deal with the process. In this case, the borrower must complete the HECM counseling themselves and sign both the HECM counseling certificate and loan application. It is only a total of 5 signatures, and the POA may sign the rest of the documents. It is also reccommended that the POA attend the HECM counseling as well.
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