Resources > Glossary > Correction Agreement Limited Power of Attorney

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Correction Agreement Limited Power of Attorney

Function: noun

This document authorizes the lender to make corrections to clerical errors. However, it does not grant authority to anyone to change the terms of the loan. The Correction Agreement Limited Power of Attorney causes some discomfort to many borrowers, because they don't always initially understand the intent of the document. The type of clerical errors which are typically corrected would include mispelled names, typos, and other clerical mistakes which don't effect the conditions of the loan in any way. The Correction Agreement Limited Power of Attorney is a document that requires being notarized. It is a common loan document, but is not in all loan packages.

The Correction Agreement Limited Power of Attorney is very similar in purpose to the compliance agreement which asks the borrowers to agree to comply if their help is needed in straightening out any clerical errors. Its also similar to the Errors and Omissions compliance agreement.