Scratch-and-Dent Volume Appears to Be on the Rise

National Mortgage News, Mar. 28, 2023–Brad Finkelstein (subscription)
After two years of record mortgage volumes, the government-sponsored enterprises are finally checking the loans they purchased during this time frame to see if they comply with the guidelines. As a result, more mortgages with underwriting dings are being put back to the originator. In turn, that is fueling growth in the scratch-and-dent marketplace.