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Citadel Loan Servicing recently rolled out something the residential market hasn’t seen in quite some time: a nonprime second lien from a nonbank. But don’t expect a groundswell of copycat loans or a rush by A-paper nonbanks to make seconds. Anecdotal evidence suggests that a handful of nonbanks are involved in 80-10-10 loan structures, selling both liens to correspondent buyers that are depositories. But as far as loan volumes are concerned, the dollar volume of seconds presently being facilitated in…
Citadel Servicing Corp., Irvine, CA, arguably the largest nonprime lender operating today, Friday afternoon rolled out a second lien product, making the loan available through its network of 1,400 approved loan brokers. Company founder and CEO Dan Perl told Inside Mortgage Finance that some type of official announcement will come Monday, June 1. “It’s probably the first nonprime second mortgage product out there [since the housing bust],” he said. Citadel will fund seconds with balances of $50,000 to $350,000. The…
Citadel Loan Servicing, one of the most active non-prime lenders operating today, has increased its maximum loan size to $1.5 million from $1.0 million, company CEO Dan Perl said this week. The privately held nonbank has carefully ratcheted up the maximum from $750,000 to $1 million and now $1.5 million. Citadel, which has been funding non-prime loans for almost a year, expects to close upwards of $15 million this month. The company’s loan volume is relatively small compared to prime…
Citadel Servicing Corp. funded $150 million of nonprime mortgages in 2014, triple the volume it did the year before. And according to company founder and CEO Dan Perl, Citadel may triple production once again this year. “I’m happy about my volume and profitability,” Perl said in an interview with IMFnews. However, the CEO continues to shy away from answering any questions about which funds are backing Citadel. In November, IMFnews reported that PIMCO had provided equity to the  nonbank. To…
Non-agency lender Citadel Loan Servicing, Irvine, CA, hopes to add 100 additional workers over the next six to eight months, effectively tripling the size of its staff. In an interview with IMFnews, company founder and Chief Executive Dan Perl said his priorities include hiring a general counsel, chief compliance officer and correspondent sales manager. Within another year or two, he estimates the privately held nonbank could employ between 300 and 400 full-timers. The company, which stared out in life as…
Citadel Loan Servicing, the most active nonprime residential lender in the nation, has launched a new correspondent program and found a “local” bank willing to provide warehouse financing. The company, however, declined to identify the name of the warehouse bank. Citadel Chief Executive Dan Peril said his Irvine, CA-based company is willing to purchase already-funded nonprime mortgages from lenders with net worth positions as low as $1 million. “We hope to have 30 correspondent lenders by the end of this…
Sunday marks the five-year anniversary of the collapse of Lehman Brothers, the largest Chapter 11 bankruptcy filing in this country's history, triggered in big bets on subprime mortgages that defaulted. And we're still feeling the effects of the crisis that followed, perhaps nowhere more so than the real estate market. Prices in most places still haven't recovered to pre-crisis levels. And subprime mortgages all but vanished. Until recently. Click here to read more on MARKETPLACE.org
Citadel Servicing Corp. discovered a need for non-prime lending and launched a product to serve this segment of the market. The company's CEO and Chairman Dan Perl discussed the process of constructing a platform to originate non-prime mortgages on the radio show Capital Markets Today. "Since 2007 brought a tremendous amount of assets that people deemed unable to be financed, we surveyed what the competition was doing outside of Fannie Mae, Freddie Mac and the government arena and discovered there…
(Bloomberg) -- While many of the lenders and investment firms seeking to profit from higher-risk mortgages are working to revive the business of bundling such loans into bonds, one of the biggest players is in no rush to see that happen.Citadel Servicing Corp. is using other types of financing and is content to rely on that borrowing for now, Chief Executive Officer Daniel Perl said. The company, which tripled its originations last year to about $150 million, is targeting $400…