California-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.