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.
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.
The Federal Reserve is open to the idea of making the "qualified residential mortgage" definition in the pending risk-retention rule the same as that of the "qualified mortgage" standard.