GSEs Issue Updated Guidance on Remote Notarizations; Powers of Attorney
Wednesday, April 1, 2020
April 1, 2020
Yesterday, March 31, Fannie Mae and Freddie Mac issued updated Selling Guidance, including temporary requirements for remote online notarization (RON) and powers of attorney (POA).
The updated guidance permits lenders to sell loans with loan documents that have been remotely notarized in 43 listed states. California is not currently on the list of states. Both GSEs provide for states to be added to their lists pending a state’s adoption of a law permitting the use of RON or if a state expressly accepts, either through state law or through the application of an express federal law, RONs lawfully performed out-of-state.
In addition to a number of other specified requirements, the updated guidance states that the RON platforms themselves must meet certain minimum standards.
Both GSEs will also temporarily allow for the use of a POA to execute loan and closing documents for loans with applications dates on or before May 17, 2020, subject to specified requirements as described within the updated guidance.
The new requirements are effective immediately and can be found here and here.