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DISCLOSURE TO THE BLIND, MORTGAGE FOR THE BLIND

Any suggestions? Any "watch out for this"?

I am meeting with someone that is legally blind and wants to apply for a mortgage. The borrower does not read Braile so this is not an option. The borrower has the income and the assets to close. The spouse can see and claims to have a financial power of attorney.

Questions:

1) Should I have a notary present to witness signatures after I read the forms to the borrower?

2) Does the financial power of attorney need to specify "for the purpose of entering into a financial obligation?"

The borrower has asked many of the right questions but I want to make sure that I have covered my bases if there ever is a question that the purchase and the resulting mortgage were not in the borrower's best interest or that he was not fully aware of the terms of the mortgage.

Did I forget to mention that the borrower is married to a much younger spouse for less than one year and that the borrower has significant net worth?

Posted by Angelo Cusinato |CRMS, CMC|Mortgage Specialist on 01/27/2009 04:03 PM

Comments (5)

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disclosures for the blind, power of attorney

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5 Comments on DISCLOSURE TO THE BLIND, MORTGAGE FOR THE BLIND

JAN

Angelo, I see the problem. I think it may be best if you ask an attorney. Definitely ask the spouse to see the power of attorney and my guess is that you'll need to read a significant part of the fine print to the borrower.

Can you say attorney? I would ask him to have his attorney review all documents before signing.

I would have the title company attorney review and approve the power of attorney for financial on this file. It doesn't matter if the borrower is blind at all, however, it would be smart for him to have legal counsel present soo that the borrower fully understands everything in the documents.

It doesn't matter if the borrower is married to a much younger woman for one year and blah, blah, blah.

Haven't you heard the saying "Love is blind" - and most of you have your vision. I don't understand what you are getting at by that little tidbit but if you focus on your client and his needs - you'll be set.

Have the title company's attorney approve the POA, prior to closing. Bottom. Uncomfortable, recommend that an attorney be present and if the borrower rejects that suggest, then have him sign off stating that he rejected your recommendation.

I agree with the previous replies in that the borrower would be well-served by attorney representation. The attorney would be obligated to look out for the best interests of the borrower. And it might save you a lot of reading. Actually, I think most borrowers would do well to hire an attorney, but that's a point for another day.

At least two major title underwriters that I know of will require a specific Power of Attorney - specific to the transaction at hand. I know that at least some lenders require this too. Either way, the POA will most likely need approval by the title agent and/or lender.

All in all, I agree with the previous replies. Best of luck.

JAN

Thanks for your responses. I have already contacted an attorney, the lender, and title company for guidance. I realize that I have to accept and professionally process any request for mortgage financing. The approval decision is made by the lender based upon information provided and I want to make sure that the situation does not require information that I would normally not collect and provide. POA signature on the mortgage application appears to be a logical request by the lender but I have not yet received their guidance. Have a great day!

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