Lender: Specific vs. General POA's on revocable trust purchase

[Damon Riley]

I'm the trustee for my mother's revocable trust and am working to diversity her holdings. She has dementia and can no longer handle any of her financial affairs (she's been declared incapacitated by two physicians). So, therefore, I've become the successor trustee (revocable & non revocable trusts), Attorney in Fact (with respect to the POA) and am the sole beneficiary.

Her daily care is taken care of, she currently has a multiunit rental & I felt adding other REO to her portfolio made sense with a mix of leveraged vs. cash purchases.

I have been to two preferred lenders for a turnkey provider and neither one will approve an investment purchase in her revocable trust (using only her assets without a co-borrower (my wife and myself). I see that per FNMA seller guide B8-5-05 that transactions require a specific POA which obviously could never happen in this scenario. The general durable POA expressly allows the Attorney in Fact to borrower, invest, etc.

I'm wondering if anyone else has run into this issue or has any suggestions?