General Information on Power of Attorneys

You will need your own attorney to draw the documant

A Power of Attorney (“POA”) is a legal document whereby one individual gives authority to another individual to act on his/her behalf for the purpose of transacting business.

To protect Senior Lending Network’s (“MORTGAGE BANK”) interests and ensure the validity of the Note and Mortgage/Deed of Trust which represents our collateral, the POA must meet the specific criteria of Senior Lending Network and the Title Company/Settlement Agent. Since the use of a POA can facilitate fraud, the Company requires that the reason for the POA be obtained and documented in the loan file.

Effective September 23, 2008, all new submissions must be in compliance with MORTGAGE BANK’s policy regarding the use of a Power of Attorney.

General Requirements:

If the loan documents are to be executed by a person acting as an Attorney-in-Fact pursuant to the authority granted under a POA, a copy of the completed and executed POA must be provided to MORTGAGE BANK for review prior to Settlement. If more than one Applicant wishes to use a POA, a separate instrument (POA) must be provided for each individual.

When received, the executed POA should be reviewed using the POA Checklist (Exhibit 1) to ensure that it meets underwriting and closing requirements. We suggest that you use the attached checklist to assist you in ensuring that the POA is in compliance with MORTGAGE BANK’s requirements.

The Broker, Processor, Underwriter or Closer should forward the executed POA to the Title Company/Settlement Agent for their review and approval as early in the process as possible to ensure a timely closing.

It is important to note that the exact form and preparation of a POA will vary from state to state, so a form acceptable in one state is not necessarily acceptable in another state. The insuring Title Company/Settlement Agent will be familiar with the state requirements.

A “Competency Statement” (Exhibit 3) is required prior to closing on all loans that have a POA that was executed less than six (6) from the date the application was submitted. However, if the reason for the POA is not due to the Applicant’s incompetence, we will require evidence as to why the POA is needed.

The attached sample Competency Statement may be provided to the Applicant for completion by his/her Physician or Physician Assistant (Exhibit 3). A Competency Letter signed by anyone other than the Applicant’s Physician or Physician Assistant is NOT acceptable.

POA Requirements

The Company requires that the POA must meet certain requirements:

a. Must be a “Durable” POA. A Durable POA continues in effect if the Applicant becomes incompetent

b. Give the right to encumber the property

c. Must be revocable

d. Executed by a competent Applicant

e. Executed and dated by the Applicant appropriately

f. If the POA is a new POA (has never been executed) we will require that photo ID be obtained for the Grantor

g. MORTGAGE BANK does not require that a POA be made specific to the transaction (i.e. identifying the subject property or terms of the transaction) unless specified in Investor guidelines.

Use of Existing POA by Persons Determined to be Incapacitated

An exception to the policy requiring a specific POA may be given in the event the principal (the Grantor of the POA) is now incompetent and unable to execute a new POA to accommodate the transaction.

If corrections to an existing POA must be made but the Applicant has been deemed incompetent or incapacitated after the date of the POA, please refer to the requirements below:

a. Confirm that the existing POA is durable (a non-durable POA will expire upon the onset of incompetence of the principal.)

b. Obtain a signed statement on letterhead from the principal's Physician or Physician Assistant confirming the incapacity and when it began

c. The Applicant must have executed the POA when the Applicant was still competent

Use of POA by Non-natural Persons (LLC’s) and Trusts

We do not allow loans to close in the name of an LLC.

If title to the property is held in a Living Trust, the POA must also reference the exact name of the Living Trust in addition to the requirements stated above. The legal Articles establishing the Living Trust must allow for the use of a POA. In addition to granting authority to act in the Principals individual capacity the POA must also specifically grant authority to act in their capacity as Trustee of the Trust.

Use of POA by Persons Residing Outside of the United States

If the POA has been executed outside of the United States, the grantor must have their signature notarized by an official at the United States Embassy.

Initial 1009 Requires Live Signatures

Applicants closing with a POA will be required to sign the initial application. The only exception is an Applicant who is incapacitated. Specified documentation will be required for the any exception.

If the use of a POA is known at the time of application

The Broker must confirm the Applicant’s and POA’s identity and Social Security Number

using the Customer ID Certification

The individual acting as the POA must attend counseling

If the Applicant is competent, the Applicant must sign the initial application (1009), attend

counseling and sign the Counseling Certificate in his/her own hand.

Title Company/Settlement Agent Requirements:

The insuring Title Company/Settlement Agent will verify at closing that the principal is alive, competent and has not revoked the POA.

An “Alive and Well Affidavit” is required at closing on all loans that have a POA. The attached sample affidavit (Exhibit 2) may be used or the Title Company/Settlement Agent may use their own.

Signature Requirements for POA

The Attorney-in-Fact would use a special form of signature on the loan documents.

Example:

Cathy Customer grants her husband Alan Customer authority under a POA because she will be

out of state at the time of Settlement. The loan documents would be signed by Alan as follows:

“Cathy Customer, by Alan Customer, Attorney-in-Fact.”

The following has been hardcoded to the Closing Instructions:

POWER OF ATTORNEY - If this loan will close using a Power of Attorney, there must be a condition within our Closing Instructions that indicates the loan has been approved to close with a Power of Attorney. If the condition is not present you may NOT allow anyone other than the Borrowers cited on the loan documents to execute the loan documents. If the condition is present, the Agent or Attorney-in-Fact must execute all of the loan documents on behalf of the Principal as follows: (1) The Agent or Attorney-in-Fact must sign the Principal’s name (2) sign his/her own name (the attorney-in-facts name) (3) next to that signature print the words “his/her attorney-in-fact”. The original POA must be recorded with the loan documents unless a recorded copy is presented to you. A certified true copy of the executed POA must be returned to the Lender with the loan documents.