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Citadel Introduces Program Enhancements for Non-Prime Credit Borrowers

Loan, file, loan fileCalifornia-based non-prime wholesale residential lender Citadel Servicing Corporation (CSC) has announced a major update to their product platform. Effective immediately, CSC will begin offering a 5/1 Hybrid Adjustable Rate Mortgage (ARM) and 5/25 Interest Only (IO) term. This now allows borrowers to qualify on the IO program without as big of a recast, which normally would increase the DTI that is used to qualify.

CSC has also introduced their easiest qualification program for full doc income to date by allowing a single year’s Returns or W-2 as documentation. This will allow brokers and borrowers to move faster through the process. The company has also expanded their 12-month bank statement program to 90 percent loan-to-value (LTV) with no mortgage insurance requirement. CSC has eliminated the need for 24 months of bank statements on the Maggi program, again adding speed and efficiency to the process. The lender fee on the Maggi (Alt-A) product has been decreased from $1,195 to $995. Furthermore, all rates on all products have been decreased by as much as .25 percent.

“We believe the time is right for these product updates, and considering our last five years of loan performance, these changes warrant incorporation”, said Will Fisher, SVP of Sales and Marketing for CSC.

Citadel Servicing Corporation, the first Lender to reenter the mortgage lending space formally known as subprime, and now renamed by CSC as “non-prime,” provides financing for both owner occupied and non-owner occupied residential properties. Established in 2004, Citadel Servicing Corporation provides an array of non-traditional financial lending products for borrowers with inconsistent past credit histories and allows for alternative sources of income documentation. CSC services all loans originated by its efforts and currently works with Mortgage Professionals exclusively via a wholesale or correspondent relationship.

About David Wharton

David Wharton, Online Editor at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 15 years of experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at David.Wharton@DSNews.com.

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