If the Bank allows an individual other than the borrower to sign the loan documents under a Power of Attorney, the Bank should obtain the original Power of Attorney for the Bank’s file. The Power of Attorney should be signed by the borrower and notarized. A Statutory Durable Power of Attorney form is located at the end of this chapter. This form is not exclusive, and other forms may be used. The Bank should confirm that the individual who signed the Power of Attorney is still alive and, if the power of attorney is not a durable power of attorney, that the individual has not been declared mentally incompetent. At closing, the Bank should have the signer execute an Agent Certification of Continuing Power of Attorney. A sample form is located at the end of this Chapter.
In real estate transactions in which the Bank receives a Lender’s Title Policy, the Texas title insurance company policy typically insures that documents affecting title have not been executed under a falsified, expired or otherwise invalid power of attorney.