Titan Capital Solutions (TCS), a wholly owned correspondent investment subsidiary of mortgage services provider Titan Lenders Corp., is now purchasing lenders' ‘scratch and dent’ loans.
These are mortgages that have been rejected by the government-sponsored enterprises (GSEs) and private investors due to data, document and compliance errors with varying degrees of severity. Adding ‘scratch and dent’ represents a significant product expansion for TCS, which previously only purchased jumbo loans from its approved sellers.
‘Historically, 'scratch and dent' referred to loans with egregious errors in underwriting or compliance,’ says Mary Kladde, CEO of TCS, in a release. ‘Now, we're seeing the GSEs issue repurchase demands on performing loans due to minor flaws in origination, such as bad comparable selections.’
‘These performing problem loans provide a significant window of opportunity for TCS to expand,’ Kladde adds. ‘Based on our operational success across the mortgage acquisitions market, we are confident TCS will provide a compelling and aggressive source of liquidity for these loans.’
In a follow-up email statement, Kladde adds that investor clients ‘will be leveraging subservicer relationships’ for the servicing of the loans.
The company is buying conventional, jumbo, non-qualified mortgage and agency-ineligible loans. Any bank, lender or investor looking to liquidate these loans from their warehouse lines or portfolios should email bids@titancapitalsolutions.com.
I have 6 loans I want sell out of our portfolio most are VA