From the Guide to the new HD 3.0 release:
"In cases where a team is chasing a recruit from a higher division, interest level is limited to Moderate until the start of the second recruiting period in cases where it's a one-division difference, or until the final 24 hours of recruiting if it's a D3 team and a D1 recruit. This means they will not sign until that point, because you have to have them at High or Very High interest to sign. On the final recruiting cycle, if a recruit has no valid offers from teams at High or Very High, he will accept an offer from a team at a lower interest level. So he would first look for a team at Moderate, then if there were none there, he would move on to Low, then to Very Low."