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 year,” Perl told IMFnews. He added that the privately held Citadel will conduct due diligence on its correspondents itself “and they must originate to our specifications.”
The lender, which uses both retail production and table funding, hopes to securitize some of its originations later in the year. It offers A to C credit grade programs. Its minimum downpayment is 20 percent.
The CEO said Citadel will fund between 40 to 50 mortgages in January, its best month ever. “February will be even better,” he said.