Mid America Mortgage Inc. announced in December that it was seeking to purchase “scratch and dent” mortgages with defects related to the Consumer Financial Protection Bureau’s new TILA-RESPA Integrated Disclosure (TRID) rules.
Four months later, the firm reports that it’s practically the only acquirer of these scratch and dent loans – most of which can be readily cured of their defects.
Jeff Bode, owner and CEO of Mid America, reports that the firm has, so far, been winning roughly 80% of its bids on TRID-defective loans.
“As expected, we’re seeing a lot of disclosures that violate required TRID timelines,” Bode says in a release. “Other typical defects range from missing NMLS and real estate broker information to improperly labeled title fees and borrower addresses.”
“Volume has picked up noticeably in the last month and half, but at times, it still seems like we’re the only ones bidding,” Bode adds.
In an earlier release, Bode says he is “confident” in the firm’s “ability to cure these defects while providing lenders with an outlet for investor-rejected TRID loans.”
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