News

Fitch Assigns Subprime Servicer Rating to Citadel. Could a ‘Rated’ Nonprime MBS Deal be Next? by Brandon Ivey 21 Dec 2016   Fitch Ratings assigned a subprime servicer rating to Citadel Servicing Corp., Irvine, CA, Tuesday, an indication that the fast-growing non-agency lender will be involved with rated nonprime MBS. Citadel received an RPS3- rating with a stable outlook. Such level 3 servicers demonstrate proficiency in overall servicing ability, according to Fitch. The rating service also noted Citadel’s experienced management team, adequate risk…
Why nonprime should be in every broker’s toolbox HomeNon Prime by Ryan Smith09 Dec 2016   Unlike the risky subprime mortgages before the financial crisis, these new products have stricter regulations and are under a different name. Nonprime loans are undergoing something of a renaissance right now – and they’re a valuable addition to the loan originator’s toolbox. While the 2008 financial crisis left a lot of people with negative feelings about subprime loans, today’s nonprime market is much different…
For the mortgage companies looking to grow your business, non-prime may just be the answer said Will Fisher, senior vice president of loan production with Citadel Servicing, a non-prime wholesale lender.   “There is a lot of money on Wall Street that is sitting on the sidelines. They were taking a ‘wait and see’ approach to see how [non-prime] underwriting performs and how the loans perform,” said Fisher. “They are looking at different performance areas such as how long do…
Subprime mortgage lending earned a bad reputation in the years leading up to the financial crisis of 2007-2008, and rightfully so. In the midst of a freewheeling lending environment that ignored most tried and true underwriting standards, Subprime loans played a significant role in a cascade of default causing harm to borrowers, lenders, and investors alike. When done correctly, however, such loans offer a safe alternative for credit-worthy borrowers who might be shut out of mortgages underwritten for sale to…
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…