Jon Mills was equally as hot on Saturday as he posted a 9-under 63. He was joined in a tie for fourth place by Bill Lunde at 15-under-par 201. John E. Morgan is one stroke further back at minus-14.
The second round was completed Saturday morning after inclement weather caused a three-hour delay on Friday. Due to the wet course conditions, players used the preferred lies rule.
Scherrer opened with a two-putt birdie on the par-5 second. He pitched his third shot on the par-5 fourth to a foot and kicked that in for birdie. The two-time winner on the Nationwide Tour ran off three straight birdies from the seventh to jump to 14 under.
The 34-year-old tripped to a bogey on No. 10 at The Dominion Club, but came right back with a birdie on 11. Scherrer bogeyed the 13th, however he erased that mistake with birdies on 14 and 15. He closed with a birdie at the last.
'I played well today,' said Scherrer. 'I haven't really been putting well this year, but I'm happy with the way I've played so far. I've got a good feeling here. I like the course and the tournament a lot.'
Villegas, who owned the outright lead entering round three, birdied the second to get to 14 under. He then drained a 35-foot birdie putt on the fourth to move well ahead of the field.
However, he slipped back to minus-14 with bogeys on the eighth and 13th. Villegas managed to share the lead thanks to birdies on 17 and 18.
'I'm hitting the ball great, but making some bad putts,' said Villegas, who tied for third at the Rheem Classic last week. 'This week has been a little frustrating from that standpoint.'
Collins used birdies at two and seven to move to 12 under. He stumbled to a bogey on No. 9 though.
The 26-year-old caught fire around the turn. Collins sank a 20-foot birdie try on the 12th, then drained consecutive birdie putts from the 15th. He rolled in a 10-foot eagle putt at the last to tie for the lead.
'I stayed patient and played solid today,' Collins said. 'I had one bad swing on nine and that cost me a bogey. I'm putting real well. I've found a comfort zone on these greens.'
Blaine McCallister stands alone in seventh place at 13-under-par 203 after a third-round 68. Matt Weibring, Joe Daley, Ken Duke and Robin Freeman are one stroke further back at minus-12.