It's frustrating. FANNIE MAE does not release the deed for review prior to closing. We have to wait for a courier delivery of the original which arrives on the day of closing. That means we have no opportunity to find problems before the last minute and usually everything is okay but not always.
This morning JC reviewed a FANNIE MAE deed for a closing in Somerset County. The deed referenced a power of attorney which had been previously recorded. Following procedure, JC pulled a copy of the POA off the Recorder of Deeds web site and found that it had expired in January of 2009. Yes, that's right -EXPIRED JANUARY 2009!
I wonder how many FANNIE MAE transactions closed in Somerset since January 2009. It's not a high volume county, so probably not many but it does make you wonder, eh?
Anyway, this is the second expired POA JC has found in recent months. Is anyone else looking at them before they close?
It's an easy fix. The attorney for FANNIE MAE just gets a new original to us by courier and we record it with the deed. The sellers are never happy because we have to do a dry closing but that's better than creating a cloud on title and it's out job to protect our insured buyer and lender.