Ginnie Mae on Wednesday issued All Participants Memorandum (APM) 23-09 that expands the use of electronic signatures for use with Remote Online Notarization (RON) to now also 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,” the government-owned corporation said.
By extending digital capabilities to include POA mortgage documents, it said, Ginnie Mae is modernizing its Mortgage-Backed Securities (MBS) program with flexibility that benefits both its 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 Sam Valverde, Ginnie Mae’s principal executive vice president. “Ginnie Mae is committed to meeting the homeownership needs of households who cannot access the traditional brick-and-mortar process.”
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, Ginnie Mae said. By using RON for POA, issuers are subject to the electronic signature and notarization requirements outlined in chapter 24 of the MBS Guide.
Ginnie Mae is a government-owned corporation that attracts global capital into the housing finance system to support homeownership for veterans and homeowners throughout the United States. Its mortgage-backed security (MBS) programs directly support housing finance programs administered by the Federal Housing Administration, the U.S. Department of Veterans Affairs, the U.S. Department of Housing and Urban Development’s Office of Public and Indian Housing, and the U.S. Department of Agriculture’s Rural Housing Service.
