This is reminder that Power of Attorney (POA) requests for the borrower or seller on a transaction must be submitted to the New Jersey Housing and Mortgage Finance Agency prior to the loan closing.
Authorization to Close letters are not acceptable in lieu of the POA. More information can be found in Chapter 9, Section 9-9, of the Seller’s Guide listed below:
9-9: POWER OF ATTORNEY
Participating Lenders must obtain NJHMFA’s written approval of a Power of Attorney prior to closing. NJHMFA will allow a Power of Attorney for the Borrower at closing only. A Power of Attorney for the Property seller is acceptable at any time in the transaction, but must be in recordable form, where applicable be recorded simultaneously with the Deed. Any Power of Attorney is subject to approval or rejection by the Agency in its sole discretion. In either case, the proper documentation must be obtained and provided to NJHMFA in the Purchase Package. Once the Agency financing has closed, an incurable flaw in any Power of Attorney, as determined by the Agency in its sole discretion, may result in the Agency’s refusal to purchase and/or fund or require that the Participating Lender repurchase all of the Agency financing in that transaction.
Thank you for distributing this bulletin to your appropriate staff.