Citadel Servicing of California has raised $200 million from private investors to originate new residential subprime loans, Inside Mortgage Finance has learned.
Citadel Servicing has raised $200 million in capital to originate residential subprime mortgages. Does this mean subprime lending is "back"? Answer: yes and no.
The Federal Housing Finance Agency hasn’t totally abandoned the idea of restructuring how mortgage servicers make a living and may take a second look at its “fee for service” proposal, according to industry executives close to the issue. A year ago, the FHFA shelved its fee for service (FFS) proposal, which would have replaced the current 25 basis point minimum fee with a flat payment of $10 per month for performing loans. This was just