Bank of America Standardized Third-Party Authorization Form

Previously, when transacting short sales, Bank of America accepted Third Party Authorization forms from a variety of sources in differing formats.  Stating a need for “greater compliance and consistency,” Bank of America has now introduced a standardized Third Party Authorization form.  Beginning April 14, 2012 all Third Party Authorizations for Short Sales involving Bank of America will be required to comply with this new format. 

The new form is two pages in length and very specific regarding terms and acknowledgements of each authorized party.  Perhaps the biggest difference, however, is that each “Designated Representative” will now be required to provide state licensing information demonstrating that they are an attorney or licensed real estate sales associate or broker.  

Though other lenders have introduced standardized forms in the past, Bank of America is the first to enforce its use as well as request license information for each authorized third party representative of the borrower.