The warning from Fitch is somewhat unusual because the rating service has assigned ratings to only one ABS from a marketplace lender: Prosper Funding in 2018.
Citadel has contributed non-QMs to MBS issued by other firms while never issuing its own security. Meanwhile, an MBS from MFA Financial with loans from Citadel is on hold.
The loan, structured by Canyon Partners with participation from credit funds managed by affiliates of Fortress Investment Group, essentially doubled the amount of cash New Residential has on its balance sheet.
Interest rates remain low and not one major (or even mid-sized) nonbank conventional lender has closed its doors. Some shops are even reporting record loan volumes in the pandemic era…