Acra Lending Services

Citadel Servicing Corporation (CSC), one of the largest non-QM lenders in the country, is changing its name to Acra Lending (Acra). The adjustment will take effect on Monday.

“We are delighted to rebrand our company as Acra Lending to reflect the significant time and resources we have devoted to internalizing consumer input, refining our financial and operating model, and investing in the best people and technology,” said Keith Lind, executive chairman, and president. The purpose of all these initiatives is to build upon our solid foundation in order to provide industry-leading service and customer-centric programs.

Previously known as Citadel Servicing, the company was acquired by HPS Investment Partners, LLC for an undisclosed sum in February 2020.

When COVID-19 struck, the non-QM market ceased to exist. Bond investors, who were the foundation of the non-QM market, fled as liquidity dried up.

Acra Lending Solutions

Citadel has halted all new originations. Its rivals Angel Oak Mortgage Solutions, New Rez Mortgage, Caliber Home Loans, Athas Capital Group, Carrington Mortgage Services, and First Guaranty Mortgage Company have all ceased making non-QM loans, which account for around 5% of the overall mortgage market.

Some non-QM lenders ceased operations, while others laid off large numbers of employees and restructured their businesses. The non-QM market as a whole is currently regaining strength.

In July, Citadel restarted non-QM financing. After a hiatus of four months, Lind stated that CSC had a “far stronger balance sheet, improved technology on both the origination and servicing sides of the business, upgraded guidelines and processes, and a varied and experienced management team.”

With nearly $700 million of the new term and non-mark-to-market warehousing facilities, Acra now has a stronger balance sheet and origination capability. Lind stated that the business will continue to invest in direct-to-consumer and correspondent channels.

“Because Citadel had developed so rapidly over the past few years, there were certain elements of the business that could benefit from investment so that we could continue lending in the best position for our firm and our consumers,” Lind explained. These initiatives have always been a component of our business strategy, but the government shutdown has allowed us to accelerate their implementation and impact.

Doug Perry, managing director of wholesale and retail for Citadel, stated that the company plans to modify its strategy as the country heals from the infection.

“Even though the industry stalled for a little period, demand for non-QM initiatives is higher than ever,” Perry said, adding that the fundamentals of the real estate market have remained solid. Whether this is safeguarding the company’s balance sheet or streamlining the origination process for our brokers and customers, processes will improve.