Wells Fargo Confusion? NO MI on Loan, but waiting for MI Approval?

What the heck????  This HAFA.  I are waiting for final Investor approval.  This is FNMAE, one loan.  Sale Date moved to 10/24 and we seem to be moving along quickly..all good.  Then yesterday I was told there was MI and that was the hold up.  Homeowner confirmed again that there is no MI.  I called again, and was told, "No, there is no MI on this loan.  However, the Investor has to check with the MI Co. to see if they need a promisory note with this loan."

 

What????  Help me understand???

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Permalink Reply by Bryant Tutas on September 28, 2011 at 2:27am
KImberley. Just because the borrower didn't pay for MI doesn't mean it's not there. This is probably a policy that was purchased by the investor to protect their interest.
Permalink Reply by SSbuyer on September 28, 2011 at 3:45am

Harry -- How has the implementation of that law prohibiting additioal compensation impacted short sale approvals in California?

I ask because I can see it having exactly the opposite effect of what was intended.  Instead of saying, "well, I'd like to get something from the seller, but since the law says I can't, I guess I'll have to just approve the offer as written" ... don't lenders/investors/MI just say "well, since I can't get any more from the seller, I'll just decline the short sale"?

 

What's been actually happening on the ground?

Permalink Reply by Michael Schneider on September 28, 2011 at 4:53am
Does the newly enacted CA non-recourse law apply to a 2nd? And to LOC 2nd?
Permalink Reply by Kimberley Kelly on September 29, 2011 at 1:26am

Harry:  I did bring that up immediately, but the woman that day did not know it and when she switched me to the "supervisor', the line went dead.

Bryant..I know that the Buyer didn't have to pay for it to be there, that's why we double checked to see if it was..there is NO MI.  But..as of yesterday, Wells Fargo told me, "The Investor is having an MI Company do the underwriting to see if the numbers work for final approval."  That made more sense to me, although I have never heard that before.  He did not insist on the Promissory note as the woman had the day before.  Once again, I am befuddled by how differently each person that picks up the phone can interpret the "notes on the file."  I am told we are waiting for "Final Investor Approval." and I expect to hear any day. 

 

Thank you all as always for your SMART and informative streams!  SSS rocks!

Permalink Reply by Kimberley Kelly on October 1, 2011 at 2:27am
The Underwriters approved the Short Sale.  We are scheduled to close and all is well..thank you all!

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