The lumbering U.S. economic recovery could generate a healthy supply of reperforming and nonperforming subprime mortgage loans for a rapidly growing niche in the non-agency MBS market: scratch-and-dent deals. The scratch-and-dent MBS market only got underway in 1998 with about $1 billion in issuance, but it has grown to a $9.5 billion business in 2002, said Peter Cerwin, a director at Deutsche Bank