Fitch Assigns Subprime Servicer Rating to Citadel. Could a ‘Rated’ Nonprime MBS Deal be Next?
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 management practices and moderate use of technology.
At the end of November, Citadel was servicing more than 2,000 mortgages with a total unpaid principal balance of $649.0 million, according to Fitch. Citadel originated the mortgages and less than 2.7 percent of the portfolio was 30 or more days delinquent.
Citadel’s collection platform has nine full-time equivalent employees, according to Fitch. The entire company – which is privately held – employs roughly 150, a company official told IMFnews. The firm does not outsource or offshore any of its servicing activities.
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