SLWs Improve Scratch & Dent Prices:
SLWs Improve Scratch & Dent Prices. There are numerous mortgage companies that sell their loans directly to Fannie Mae and Freddie Mac. For mortgage providers who do not sell directly to the agencies, their investors are usually direct. One might think there is an even playing field as the loans all end up in the same place. But that is not always the case.
Each relationship for a direct seller to Fannie Mae and Freddie Mac have a specific plan on what can be sold and what cannot be sold. Those parameters are based on a seller’s financial situation and established relationship. Some of those relationships can request exceptions and guideline variances for scratch and dent loans, unsaleable loans and investor fall-out loans. These exceptions are called Single Loan Waivers (SLW).
Within the S&D market, a loan with a SLW could potentially improve a scratch and dent bid by 10-15 points. Which can equate to large savings for a mortgage provider. Therefore, it is extremely important to know which scratch and dent buyers have a large amount of variances. So they can offer a scratch and dent price based on receiving a SLW. Unfortunately for mortgage companies, it can be difficult and challenging to understand who can offer the improved pricing.
Right House Capital:
Right House Capital has established buyers who have the ability for Single Loan Waivers. RHC has vetted and worked with these buyers. Every buyer has a different set of variances they can request. Right House has the experience and knowledge for which buyers are able to request a SLW depending on the actual flaw.
Mortgage providers can alleviate the challenge for searching and finding the specific buyer who may have the ability to request an exception for each scratch and dent loan by trusting in Right House. Mortgage companies can rely on RHC’s buyer knowledge to guide and direct their loss mitigation.
Summary:
Hopefully, this information on how SLWs Improve Scratch & Dent Prices should be very useful. This information can assist mortgage companies with understanding who to turn to when they have unsaleable loan. With all that said, Right House Capital is here for any of your liquidation needs when it comes to loans that violate investor overlays or agency guidelines. For more information or if you have any problem loans in your pipeline, contact Andrew Zale at 502-365-5632.
