Loan Officer Practice Exam 2025 – Complete Preparation Guide

The correct choice highlights that a family member can act as the POA signer, but this is not a requirement specified in the Fannie Mae Selling Guide. The requirement focuses more on the eligibility of transactions (such as purchase and refinance), the notarization of the POA, and the necessity for the lender to maintain a copy of the POA. These elements ensure that the use of the power of attorney is secure, verifiable, and compliant with legal standards.

In contrast, the involvement of a family member as a signer is not dictated by the guidelines, which may allow for broader criteria regarding who can act as the attorney-in-fact. The flexibility around who can serve in this role reflects the understanding that a POA can be appointed by an individual to suit their needs, as long as it meets the established guidelines of authenticity and proper documentation. This nuance is important for both lenders and borrowers to understand in facilitating real estate transactions involving a POA.