The answer to that question lies in the language of the Power of Attorney document that was signed.
If the POA document is broad in scope, then the spouse/attorney-in-fact could transfer title to property in her own name.
Durable power of attorney documents can vest significant power and authority in the attorney-in-fact.
However, with that being said, most states have laws that impart on an attorney-in-fact a fiduciary obligation; that is, the attorney-in-fact is obligated by law to act with the highest degree of good faith on behalf of the principal who appointed the attorney-in-fact.
Actions that benefit the attorney-in-fact, to the detriment of the principal, would violate this fiduciary obligation and can, possibly, be actionable in court.