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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 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.

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.

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 a word for dent?

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

What is usual discount for a scratch and dent appliance?

washers and dryers

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.

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.

What is another word for 'damage'?

Break, scratch, dent, mutilate, destroy

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.

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