Citadel adds business bank statement option to signature product

by Ryan Smith11 Jul 2017
(CSC) is introducing a new feature to one of its most popular products that will make it an even better mortgage solution for self-employed borrowers.

“We are now doing business bank statements on our Maggi Plus product,” said Will Fisher, CSC senior vice president of national sales and marketing. “That’s our take on the Alt-A mortgage. Rates start in the 4% range and move up from there.”

Fisher said that accepting business bank statements opened up options for borrowers with great credit who might otherwise have a hard time finding a loan due to narrow income qualification guidelines.

“This is geared toward the self-employed borrower who can only show business bank statements for income – meaning they can’t show tax returns due to the breaks they are afforded via the tax code or operate all their finances out of their business bank statements,” Fisher said. “It’s also great for someone who had a life event over two years ago or multiple life events over four years ago – a life event being a foreclosure, short sale or bankruptcy.”

The Maggi Plus program is for owner-occupied purchase loans, refis or cash-out. With business bank statements as proof of income, the program can be for loans amounts up to $3 million, with an LTV of up to 85%. The minimum qualifying credit score is 650.

“This will require a 43% debt-to-income ratio, and we will require some reserves – but that’s usually not an issue,” Fisher said. “The program is also available for first-time homebuyers.”

Fisher said that adding the business bank statement option to CSC’s signature Maggi Plus product is good business – for both the company and its customers.

“For our borrowers, it’s going to give them access to a much lower interest rate, more access to capital and easier terms to live with,” he said. “For Citadel, it’s definitely going to be a boost to our loan production, and we’re comfortable with the risk because we’ve seen performance on our bank statement loans do extremely well. … We’re really excited about this. We think it’s a win-win for the borrower, mortgage professional and CSC.”

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