Mid America Mortgage Seeks To Buy TRID ‘Scratch And Dent’ Loans

Mid America Mortgage Inc. reports that it is seeking to purchase “scratch and dent” mortgages with defects related to the Consumer Financial Protection Bureau’s new TILA-RESPA Integrated Disclosure (TRID) rules, even if the loans have been rejected by investors.

“With TRID now in effect for two months, loans with the new disclosures have begun making their way to investors and [are being] rejected for purchase due to minor TRID infractions to more significant errors,” says Jeff Bode, owner and CEO of Mid America, in a release. “It is to be expected, with a change this voluminous, to have errors during the first months of loans. While the industry has diligently striven to have systems in place, training delivered and testing fully vetted, errors cannot be completely avoided.

“Mid America feels confident in its ability to cure these defects while providing lenders with an outlet for investor-rejected TRID loans,” Bode adds.

Reportedly, there are more than a dozen different types of potential defects related to TRID. Some of the more common ones include the following:

  • Disclosure timing outside of required timelines;
  • Missing Nationwide Multistate Licensing System information;
  • Missing real estate broker information;
  • Extraneous logos on the loan estimate or closing disclosure;
  • Title fees missing or not including “title” before the fee name; and
  • Closing disclosure showing property address as borrower current address on a purchase.

For more information, contact Richard Glover, managing director of whole loan sales, at 817-735-1071 or richard.glover@midamericamortgage.com.


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