Non-QM lender Citadel Servicing will be renamed Acra Lending


Citadel Maintenance Company (CSC), one of the largest non-QM lenders in the country, will be renamed as Acra Lending (Acra). The change will apply from Monday.

“We are excited to rename our business Acra Lending to reflect the significant time and resources we have invested in internalizing customer feedback, refining our financial and operating model, and investing in the best people and technology,” Keith said Lind, executive chairman and president, said in a press release. “The goal of all of these efforts is to build on our strong foundations to offer industry-leading services and programs that meet our customers’ needs.”

The company then known as Citadel Servicing was acquired by HPS Investment Partners, LLC in February 2020 at an undisclosed price.

When COVID-19 hit, the non-QM market disappeared. Liquidity had dried up and bond investors supporting the non-QM market were racing.

Citadel took a break from new origins. Its competitors Angel Oak Mortgage Solutions, New Rez Mortgage, Caliber home loan, Athas Capital Group, Carrington Mortgage Services and First guarantee mortgage company all stopped issuing non-QM loans, which account for about 5% of the total mortgage market.

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Some non-QM lenders went out of business while others laid off large numbers of employees and reorganized their businesses. Today, the The non-QM market as a whole is returning to strength.

Citadel resumed non-QM lending in the summer. After a four month break, Lind said CSC boasted “a much stronger record, better technology on both the source and service sides of the business, updated policies and processes, and a diverse and experienced management team.”

Acra now has greater balance sheet and sourcing capacity with over $ 700 million in new maturities and zero mark-to-market storage facilities. The company will continue to invest in direct customer and correspondent channels, said Lind.

“Citadel had grown so rapidly in recent years, and accordingly, there were certain aspects of the company that could benefit from investing so we could resume lending in the best position for our company and our customers,” said Lind. “These investments have always been part of our plan, but this shutdown has allowed us to really accelerate their implementation and impact.”

Doug Perry, Citadel General Manager for Wholesale and Retail, said The company expects to refine its plan when the country recovers from the virus.

“Although the sector paused for a short period of time, the demand for non-QM programs is stronger than ever,” said Perry, adding that property fundamentals have remained solid. “Whether the company’s balance sheet is secured or the origination process is made more efficient for our brokers and consumers, practices will improve.”

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