You really should ask this question of an attorney - but here's what (little) I know about dower rights: I believe that your wife can sign away her right to dower. What is dower? It is a right to live in the premises until death. In states where dower and curtsey (not curtesy) are recognized (old common law), in order to sell property, the spouse must release their right of dower/curtsey for clear title.
I think it's only right that your wife not provide you with a power of attorney to sign the mortgage on her behalf - why on earth would she want to be held responsible/liable for your mortgage? You can ask that she sign a waiver of her right to curtsey.
Originally Posted by http://www.fayettecountyclerk.com/web/landrecords/documentrecording/other/releaseofdowerorcurtseyinterest.htm
Release of Dower or Curtsey Interest
The Kentucky Statutes do not permit a "Release of Dower or Curtesy Interest" by married persons as a stand alone document in general. To release a dower or curtsy interest the document must be in the form of a deed or will (KRS 386.095).
You need to contact a lawyer. Kentucky Bar Association Lawyer Referral Service is a low cost initial consultation with a lawyer in this practice area.
Note: curtsy and curtsey are used interchangably in search engines and in reporting
ETA: You can also look here: http://www.bankersonline.com/forum/u...t&Number=28147
-- It is NOT specific to Kentucky but applies to banking/mortgages.