It appears that servicers - especially Wells Fargo , have been interpeting HUD's PFS 31 day delinquency requirement diferently. I have seen one Wells "negotiator" refuse to accept an offer for review until seller/borrower is at least 31 days delinquent and another "negotiator" refuse to issue the final Approval Letter until the 31 daydelinqunecy requirement is met.
Working with NAR and HUD, I have received the following clarification:
" Once the ATP has been issued by servicer and accepted by seller/borrower, the servicer MUST accept an offer from seller/borrower for review, HOWEVER, the servicer shall have discretion whether or not to issue the final Approval Letter until the 31 day deliquency requirement has been met".
Hope this helps out there. If you need any additional information, contact Sarah Young at NAR. Her email address is [email protected]. Good luck!
Chase is bad on this too. ML 2008-43 really gives them an out on that Guideline.
I agree. ML 2008 - 43 provides servicer discretion whether or not to review borrower in eminent default, but once borrower has been accepted and ATP issued, then according to HUD, my earlier post would apply.
Hopefully this barrier will be removed when the upcoming changes to the PFS Program are made later this month.
It will be interesting to see what the "enhancements" are and how the servicers apply them.