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
Wells Fargo last year wound up keeping almost $20 billion of new residential production its books instead of selling the loans to Fannie Mare and Freddie Mac.
Companies that make their living from servicing delinquent and high touch mortgages may want to reconsider their business options going forward. According to new figures compiled by Inside Mortgage Finance, late payments on home mortgages continued their downward trend in the fourth quarter with the nations top servicers recording a combined delinquency rate of 9.48 percent, a 141 basis point improvement over the same period a year earlier. Compared to the third quarter, late payments fell 74 bps, another sign that the problem loans are...[Includes one data chart]