“Even though the sector paused for a short period, the demand for non-QM programs is stronger than ever,” Perry said, adding that real estate fundamentals have remained sound.
“These investments were always part of our plan, but this shutdown allowed us to really accelerate their implementation and impact.”ĭoug Perry, Citadel’s managing director of wholesale and retail, said the company expects to fine-tune its plan as the country recovers from the virus. Non-QM stands for Non-Qualified Mortgage, meaning a loan that does not meet the Qualified Mortgage (QM)/Ability-to-Repay (ATR) standards that were put in place through the Dodd-Frank Act. “Citadel had grown so quickly in recent years, and accordingly there were certain aspects of the businesses that stood to benefit from investment so we could restart lending in the best position for our company and our customers,” Lind said. The company will continue to invest in direct-to-consumer and correspondent channel, Lind said. Following a four month pause, Lind said CSC boasted a “much stronger balance sheet, better technology on both the origination and servicing side of the business, upgraded guidelines and processes, and a diverse and experienced management team.”Īcra now has greater balance sheet and origination capacity with over $700 million of new term and non-mark-to-market warehouse facilities. Today, the non-QM market as a whole is returning to strength.Ĭitadel resumed non-QM lending in the summer. Some non-QM lenders went out of business, while others laid off huge numbers of staffers and reorganized their businesses. Its competitors Angel Oak Mortgage Solutions, New Rez Mortgage, Caliber Home Loans, Athas Capital Group, Carrington Mortgage Services and First Guaranty Mortgage Company all halted issuing non-QM loans, which comprise roughly 5% of the overall mortgage market. Liquidity had dried up and bond investors, which underpin the non-QM market, were running for the hills.Ĭitadel pressed pause on new originations. When COVID-19 hit, the non-QM market disappeared. Then known as Citadel Servicing, the company was acquired by HPS Investment Partners, LLC in February 2020 for an undisclosed price. “The goal of all these efforts is to build upon our strong foundation to provide industry leading service and programs to suit our customers’ needs.” “We are excited to rebrand our business as Acra Lending to reflect the substantial time and resources we have dedicated to internalizing customer feedback, fine tuning our financial and operating model, and investing in the best people and technology,” Keith Lind, executive chairman and president, said in a news release. Quontic can approve more borrowers than other non-QM lenders because of unique loan features you won’t find elsewhere. Past performance of a security does not guarantee future results or success.Īxos Invest LLC, Axos Invest, Inc., and Axos Bank are separate but affiliated companies.Citadel Servicing Corporation (CSC), one of the country’s largest non-QM lenders, is rebranding as Acra Lending (Acra). Quontic’s non-QM loan options bridge the funding gap for qualified borrowers who are ready for a mortgage but can’t provide the income documentation some lenders require. Investment risk including possible loss of the principal invested. Insured by the FDIC or any governmental agency, and are subject to
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