A North Texas firm claims that it is successful in four-out-of-five bids it makes on loans that don’t meet TILA-RESPA Integrated Disclosure requirements.
Following the implementation of TRID on Oct. 3, some
primary mortgage originators have been saddled with loans that were rejected by investors for TRID defects.
Investors are rejecting the loans over TRID infractions
that reportedly range from minor errors by the company that closed the loan to more significant defects.
More than three months ago, Mid America Mortgage Inc. started buying TRID defect loans, according to an announcement Wednesday.
Purchase prices on such loans are at a discount of around four points
on the ultimate securitized value less the cost to cure.
In addition to disclosures that violate required TRID time lines, Mid America Owner and Chief Executive Officer Jeff Bode noted that defects range from missing NMLS and real estate broker information to improperly labeled title fees and borrower addresses.
The Addison, Texas-based business, which claims to be one of the few bidders on such loans, reports that it wins approximately 80 percent of its bids on the loans.
Weekly volume, which is generated from brokers that specialize in selling TRID defect loans and lenders, has reached nearly 20 loans.
“Volume has picked up noticeably in the last month and half,” Bode said, “but at times it still seems like we’re the only ones bidding.”
Bode expects volume, however, to taper off later this year as TRID work flows are streamlined.
Companies interested in unloading TRID rejects are being directed to contact
Mid America Mortgage Managing Director Whole Loan Sales Richard Glover at 817.735.1071 or [email protected].
