The new product is one of several innovative programs the company has introduced in recent months
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Citadel Servicing Corp. (CSC) has launched a new program that allows borrowers to only use a simple verification of employment to apply for a mortgage.
“You just provide an employer-prepared verification of employment document,” said Will Fisher, senior vice president and national sales and marketing manager for CSC. “All you have to do is have a continuous two years of employment verified by that VOE, and a voice verification on the day we’re going to fund.”
The program is open to borrowers with credit scores of at least 650 and is good for loan amounts between $250,000 and $3 million, with a maximum LTV of 75%. It requires that a VOE be completed by the owner or an officer of the company where the borrower is employed, and that the company be able to verify at least two years of continuous employment with that company.
Other than a confirmation of down payment for purchase loans, the program doesn’t require any other income documentation, Fisher said.
“It’s just another avenue to get funded, and we’re very comfortable with the risk level,” he said. “Borrowers with that credit score are usually very comfortable making their payments.”
The new VOE program is only one of several programs Citadel has introduced in recent months to broaden the reach of Non-Prime lending.
“It’s always been in the playbook, and at certain times of the year we like to come out with the items that we have on the shelf,” Fisher said. “Our strategy is really to own the non-prime space – everywhere, really, but especially in the low-LTV area.”
It’s CSC’s ownership of that low-LTV space that allows the company to offer innovative products and programs like its VOE loan, Fisher said.
“We see some of our other competitors in non-prime who are making loans up to 95% LTV, and those have a history of not paying,” he said. “We try to stay away from loan products that have a history of not performing well and really aren’t good for borrowers. It’s just proper lending – risk-based lending.”
