Freddie Mac is imposing strict rules concerning Power of Attorney that would only allow use for a bonafide medical emergency, natural disaster or other hardship for all mortgage with Application Received Dates on or after June 30, 2021. Defining what a true bonafide emergency or hardship is up to interpretation and would be difficult to document without risk. With that, GMFS LLC will not allow a POA to be used on loans approved on a Freddie Mac program or with LP findings for loans with an application received date of 6/30/2021 or after.

In order to close using a POA on a conventional loan, you must have DU Findings and be locked on a Fannie Mae program.

GMFS LLC will continue not allowing a POA to be used on any conventional cash-out refinance.

All use of a POA must be approved by GMFS LLC management and should be specific to the transaction, including but not limited to the lender name, maximum allowed loan amount, physical address and legal description. The POA must be held by a family member, fiancé, domestic partner or personal attorney.

POA requirements for government programs remain unchanged.