Citadel’s product roster helps expand appetite for non-prime

Non-prime, after years in the wilderness, is officially back. If you need proof, look no further than the record-breaking month Citadel Servicing Corp. (CSC) saw in August.

“We’re on a terrific roll right now; September was another record funding month,” said Will Fisher, senior vice president and national sales and marketing director for CSC.

“That is exclusively Non-Prime, Non-QM originations,” Fisher said. “We’re firing on all cylinders, preparing for the end of the year. We received more loans (in August) than we have in our company history.”

That’s because Non-Prime loans are more flexible than many products that may not fit in the traditional QM box.

“While everybody else seems to be down, we’re up – and it’s because the product that we offer allows brokers to go after an underserved part of the population,” Fisher said. “Not just people with credit events, but self-employed and/or jumbo borrowers as well. A lot of people are realizing that this is a very viable product. It’s the same process as originating conventional or government loan, except you don’t have to worry about running or getting a positive DU (desktop underwriting) result.”

And Citadel is helping to expand the Non-Prime market with its innovative products, including

• The ONE-month bank statement program that allows self-employed borrowers to qualify for a mortgage based on just one month’s bank statement and solid credit history
• Lender-paid compensation that allows the broker to offer borrowers, in essence, a no-point loan
• A business bank statement option on Citadel’s Maggi Plus product. This gives new flexibility self-employed borrowers who can only show business bank statements for income
• A non-owner business-purpose loan product for borrowers looking to fund non-owner-occupied properties without needing TRID disclosures or wait times

Fisher said that as non-prime continues its comeback, more and more lenders will jump on the bandwagon. However, he said, consumer appetite for Non-Prime continues to increase as well.

“We do expect more competition in our space, but we think there’s more than enough volume for everyone to do well,” Fisher said. “That’s why we’re expanding our correspondent channel – we want to show originators that there’s another outlet where they can diversify their business away from diminishing government originations.”