One of the biggest non-QM lenders in the nation, Citadel Servicing Corporation (CSC), is changing its name to Acra Lending (Acra). It takes effect on Monday.
According to a news release from Keith Lind, executive chairman and president, “We are excited to rebrand our company as Acra Lending to reflect the substantial time and resources we have dedicated to internalising customer feedback, fine-tuning our financial and operating model, and investing in the best people and technology.” All of these initiatives are intended to expand on our solid basis and offer industry-leading service and programmes that are tailored to the demands of our clients.
The business, which was formerly known as Citadel Servicing, was bought by HPS Investment Partners, LLC in February 2020 for an unknown sum.
The non-QM market vanished when COVID-19 was implemented. Bond investors, who support the non-QM market, were fleeing because liquidity had dried up.
Citadel stopped all new creations. Its rivals First Guaranty Mortgage Company, Angel Oak Mortgage Solutions, New Rez Mortgage, Caliber Home Loans, Athas Capital Group, and Carrington Mortgage Services have stopped making non-QM loans, which make up around 5% of the total mortgage market.
Some non-QM lenders went out of business, while others made significant employee reductions and restructured their organisations. The non-QM market is currently growing again as a whole.
In the summer, Citadel restarted non-QM financing. After a four-month hiatus, Lind noted that CSC had “far stronger balance sheet, superior technology on both the origination and servicing side of the business, revised rules and processes, and a varied and experienced management team,” among other advantages.
With additional term and non-mark-to-market warehousing facilities worth over $700 million, Acra now has increased balance sheet and origination capability. Direct-to-consumer and correspondent channels will continue to get investment from the corporation, according to Lind.
Citadel had expanded so swiftly in recent years that certain elements of the businesses stood to gain from investment, according to Lind, so we could continue lending in the best possible way for our firm and our clients. Although these initiatives were always part of the plan, the shutdown enabled us to move much more quickly to implement and affect them.
Citadel’s managing director of wholesale and retail, Doug Perry, stated that the company anticipates fine-tuning its strategy as the nation recovers from the virus.
The demand for non-QM programmes is higher than ever, Perry said, noting that real estate fundamentals haven’t changed despite the sector’s brief pause. “Whether that involves safeguarding the company’s balance sheet or creating the origination