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 maximum combined LTV will be 80 percent. The lowest FICO score will be 550, said Perl.
The nonbank plans to keep some of the second liens on its repo line, but will sell the product along with its first liens to investors in the secondary market. As a practice, Citadel does not disclose who its investors are.