On Wednesday, Ginnie Mae [1] announced in All Participants Memorandum (APM) 23-09 that it is extending the use of electronic signatures in conjunction with Remote Online Notarization [2] (RON) to include power of attorney (POA) mortgage documents.
All Ginnie Mae Issuers can now use RON to execute POA documents when necessary to obtain Single-Family government-insured or guaranteed loans on “paper” mortgages. By extending digital capabilities to include POA mortgage documents, Ginnie Mae is modernizing its mortgage-backed securities [3] (MBS) program with flexibilities that benefit our Issuers and borrowers.
“We are pleased that this extended program feature will benefit service member borrowers on overseas duty and other borrowers who cannot execute loan documents in person,” said Ginnie Mae Principal Executive VP Sam Valverde. “Ginnie Mae is committed to meeting the homeownership needs of households who cannot access the traditional brick and mortar process.”
Ginnie Mae further notes:
Issuers must continue to follow all insuring or guarantying agency guidance regarding POA eligibility and requirements, including the circumstances under which a borrower is permitted to use an attorney-in-fact to obtain Single-Family government-insured or guaranteed loans. By using RON for POA, Issuers are subject to the electronic signature and notarization requirements outlined in chapter 24 of the MBS Guide.