Mid America Mortgage Buying Loans with TRID Defects

Mid America Mortgage Inc. has created a scratch-and-dent purchase program to buy loans with TILA-RESPA integrated disclosure rule defects.

The Addison, Texas-based company is willing to buy loans that other investors refused to purchase because they were worried about liability as a result of disclosure errors.

"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," said Jeff Bode, owner and chief executive, in a press release.

The company is willing to buy loans whose disclosure timing falls out of the TRID rule's guidelines, where the Nationwide Mortgage Licensing System information is missing, the real estate broker information is missing, there are extraneous logos on the loan estimate or closing disclosure, the title fees are missing or the word "title" is not included before fee name, and the CD has the property address as the borrower's current address on a purchase loan.