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As it applies to mortgage loans, "Scratch and Dent" has come to mean any one or combination of 'defects' stemming from originations made outside a lender's implemented credit guidelines, deficiencies in loan documentation, errors made in following regulatory compliance laws, irregular payment history or borrower defaults. There may be other reasons but these five categories are usually the most common.

Here are a few examples:

1. Outside Guidelines: Borrower with a 605 credit score but the product guidelines called for a minimum score of 620

2. Document Deficiencies: loan file is missing an origination appraisal

3. Regulatory Compliance: funds were disbursed to the borrower prior to expiration of a three day rescission period

4. Pay History: in the past 6 months the borrower has been 30 days late with his payments on two occasions

5. Borrower Defaults: borrower misses payment(s) completely "Scratch and Dent" may also include loans to borrowers who have filed for bankruptcy (in the past or after subject loan was made), borrowers currently in the foreclosure process (any stage) or loans found to be fraudulent after closing (occupancy, income, employment, etc.) Years ago, it primarily referred to loans that were either 'sub-performing', 're-performing' or 'non-performing' in their cash flows/payments. So you see, it has really become something of a catch-all definition these days!

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โˆ™ 2007-10-28 01:21:41
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Q: What is scratch and dent mortgage?
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Related questions

Where can you buy scratch and dent appliances in Chicago?

Sears would be a great place to look for scratch and dent appliances in Chicago.They sell hundreds of appliances and are more than willing to reduce the price when a scratch or dent is noted.


Where can I purchase scratch and dent appliance online?

You can purchase Scratch and Dent appliances at Sears or at any local appliance store. Sears is located in many malls and they have a website that will be there for your convenience.


Are most scratch and dent appliances brand new or used?

Most scratch and dent appliances are used products. They are called scratch and dent items because they most likely have scratches on them or contain dents on them from years of usage.


What products can one use to repair a car scratch at home?

If it is a scratch in the paint there are touch up kits available from a car dealership's parts department. For a dent and scratch add some dent filler to the touch up kit to fill in the dent.


Is there a product on the market to improve a scratch or a dent in appliances?

If the appliance is stainless steel, a scratch can be improved by using a stainless steel scratch removal kit. Scratch-B-Gone, and Rejuvenate Stainless Steel Scratch Eraser Kit are both products that can improve the appearance of a scratch or dent in an appliance.


What are scratch dent appliances used for?

Scratch dent appliances are just that, your regular appliances that are either scratched or dented. These appliances can be purchased at a discounted price from most of your regular retailers.


Why get an scratch and dent appliance for your home?

A "scratch and dent" appliance for your home is a recommended product due to its durability factors. Many companies utilize this "tagline" such as GE, LG, and Whirlpool to name a few.


How can you fix a scratch and a dent in a kitchen appliance?

You can send your appliance to be repaired. There are a number of specialists and repair men which can be contacted, such as "Scratch and Dent Appliances" or "Bray and Scarff Appliance and Kitchen Specialists".


Home Depot Scratch and dent warehouse?

The Home Depot sells appliances that have been scratched or dented in their scratch and dent warehouse. These appliances work perfectly fine and sometimes the scratch or dent is very small, but you can often find large discounts at these stores throughout the country.


Where can you purchase scratch and dent appliances at a discount?

You can buy the "as is" scratched and dented appliances at one of the Scratch and Dent appliance Superstores located in Ontario, Canada. There is one located in Kitchener that you can check out for more information.


What is usual discount for a scratch and dent appliance?

washers and dryers


What mph would it be to get a scratch and a dent on the car?

I get scratches and dents when I leave my car in a parking lot and people fling their car door open. A deep scratch or dent can be created at snail speed.


Where can you buy cheap scratch and dent appliances in Melbourne?

You can find cheap scratch and dent removing appliances at ten Nicholson Street Coburg drive. Many people are satisfied with how cheap it is do do removeals and how well it is done.


What is another word for 'damage'?

Break, scratch, dent, mutilate, destroy


What a word for dent?

Indentation, scratch and scrape are synonyms for dent. Additional synonyms include nick and damage.


Where are the warehouses for the scratch and dent appliances for home depot?

Pinellas county, fl


What are scratch and dent appliances?

Scratch and dent appliances are appliances offered at a reduced cost due to scratches or dents. These are usually new, unused appliances that are offered at a significantly reduced price due to blemishes which probably occurred in shipping or while on the floor of the store.


What are some examples of understatement?

Saying "We've had a little rain," when the neighborhood is flooded. Saying "It's just a scratch," when there is a huge dent.


Deep Discounts at Scratch and Dent Appliance Stores?

Showroom appliances can become slightly damaged in transport. Because retailers want to display perfect-looking merchandise, anything that has been damaged with a scratch or dent must be replaced in order to sell other similar items. Once a cosmetically-damaged appliance, like a stove or washing machine, has been taken off the floor, it is then sold at a lesser cost to a scratch and dent appliance dealer. These dealers, in turn, sell these slightly damaged appliances at a fraction of the cost of what a regular retailer sells them for. People looking for a good buy on an appliance should visit a scratch and dent appliance warehouse. They will have their pick of washers and dryers, stoves, refrigerators and freezers, stainless steel ice makers and dishwashers. Gas and electric stove tops and range hoods are also available in enamel and stainless steel. You can find single and double door ovens and even wine coolers. Scratch and dent appliance warehouses also sell heaters and air conditioners. These are not off brands or second-hand appliances. At a scratch and dent appliance dealer, all the major appliance manufacturers are represented. Another type of item at a scratch and dent appliance store is the discontinued appliance. These are moved out of an appliance dealer's main showroom and taken to scratch and dent appliance dealers where they are sold to the public at fraction of their original prices. Starting in around September or October, any new stock that an appliance dealer is unable to sell must be moved off the showroom floor in order to make way for the next year's new models. The previous year's unsold inventory is then sent to scratch and dent appliance outlets. This late-in-the-year inventory is brand-new, undamaged merchandise. When an old washing machine stops working or the refrigerator's generator gives out, their owners usually don't have the extra money lying round to replace them. These people stand a much better chance of being able to replace their old appliance with a new one from one of the many scratch and dent appliance warehouse stores. This is the most economical solution to the problem.


What does slight signs of use in a cell phone?

It probably means tiny scratch, wear, or tiny 1/16" dent on edge


Can you show me some of Home Depot 's scratch and Dent Refrigerators - side by side?

No. You need to visit a store or go to their website.


Where can I find a gently used commercial 3 door freezer in the Phoenix area?

you should try craigslist or a sears scratch and dent warehouse


Is it safe to buy scratch and dent appliances?

Scratched and dented appliances can save you a lot of money. Most are straight from the packaging but have met with small knocks or scratches that mean buyers have rejected them. Many retain their manufacturers guarantee although some will be sold "as seen" so it is important that you check the item thoroughly to identify all the damage. If you buy from a reputable scratch and dent supplier such as Sears you should have no concerns.


Why might an appliance retailer hammer dents into the sides of its refrigerators?

Some retailers buy scratch and dent aplliances, they get dented during shipping and delivery and are sold cheeper..


Where do I buy in and out furniture from?

The best place to look first is Kijiji or Craigslist. You may find in and out furniture there. If not, try a furniture store and try to get a good deal there, especially if it is scratch and dent.