I'm in the process of finishing up a short sale with Wells Fargo as the first and E*Trade who is serviced by PNC Consumer Services. We have an updated letter from Wells Fargo stating that they are paying $2,000 to Consumer Services. Our approval letter for the Jr. Lien is from Consumer Services. The title company wants to see the service agreement between PNC Consumer Services and E*Trade. They won't close escrow until they get some sort of proof that Consumer Services represents E*Trade. When I have contacted PNC Consumer Services, I am told that the Service agreement is confidential. I'm also told that they do not have a letter stating that they service E*Trade. I have attempted to call the E*trade legal department - much easier said than done. Any suggestions
find a new escrow company
Yes - that thought occurred to me but we are supposed to close in four days. This will be the last escrow that they handle for me. I found something on ETrade's website that states CLC Consumer Services is an Affiliate that handles their installment loans and Home Equity loans. We have only dealt with Consumer Services through the entire process. This is what makes short sales so irritiating - lots of hoops to jump through.
The problem is probably not the title company(closing agent) but probably with the title Insurance underwriter. Here we only have 2-3 major underwriters in the state, so this may be an ongoing issue.
Yes, it is the title insurance underwriter. However, this is one of the largest title companies in the United States so I would think that they have done a CLC Consumer Services/ ETrade deal before. Another agent mentioned calling the Title Company's legal department - that they probably have something on file.
Very simple: find a new closing company. Some attorneys and title agencies have different title insurance companies and depending upon the title company or attorney's past claims performance maybe more heavily scrutinized than others. Any attorney or title company asking for a pooling servicing agreement to close the sale is obviously ignorant (the banks will never provide that). There is a chance that Etrade (the owner) might provide a letter stating that PNC has servicing rights, but your best path to get that is through PNC.
I had a title co ask for this once. I asked them if the MERS login site would work and it did. You can see the servicer and investor with the homeowner social. It worked for me. Can't say if it will work for you.
I believe the servicing agreement may be required to be filed with the SEC, if the loan was placed in a securitzed trust, and you can get a copy from their website. I have completed such a task several times. Also, you may want to consult an attorney and/or submit a qualified written request under RESPA requesting said documents. If there is a foreclosing law firm, it may help to get them involved, requesting the service agreement directly.
Hi Ann, I have 3 files with this issue, and know I'll be seeing more... You should be able to get a power of attorney from PNC or you may be able to find some reference in the legal doc's if the FC is pending. Please email me [email protected]
Greta mentioned that this request has come about because of "fake" short sale approval letters. The Title Company obviously wants a clear title - no questions down the road. I have a call and email into my Escrow Officer to see what she did to come up with the required proof of servicing. Just trying to learn something from each transaction. This transaction did close on time even though our Wells Fargo closer was out sick on Monday. They approved the HUD1, funded and recorded all on the same day so awesome job Old Republic Title.
Escrow Officer said that she went to MERS and...to the Lane Guide. I googled the Lane Guide which you need an annual license to use. www.laneguide.com/ Now at least I know where to go or where to direct the escrow officer.