Yes, we believe a customer may sign real estate loan closing documents via a power of attorney (POA), provided that the POA form authorizes the attorney-in-fact to execute real estate documents. The Illinois Power of Attorney Act provides a form for Power of Attorney documents, titled the “Statutory Short Form Power of Attorney for Property” (but note that individuals may use other forms that do not match the statutory form). 755 ILCS 45/30-3. The statutory form provides that an agent may exercise the power to execute “real estate transactions” and “borrowing transactions.” 755 ILCS 45/30-3 (items (a) and (m) in Section 1 of the form).

If the power of attorney includes those items (and no one has crossed those items out), then we believe the power of attorney document authorizes the attorney in fact to sign loan documents. The law explains that “borrowing authority” includes the authority to “mortgage or pledge any real estate . . . as security for such purposes; sign, renew, extend, pay and satisfy any notes or other forms of obligation.” 755 ILCS 45/30-4(m).