An upcoming acquisition will create a mortgage banking firm with more than 3,000 employees that ranks among the nation’s 20-largest home lender.
Last year, Prospect Mortgage LLC originated nearly $9 billion in residential loans. The mortgage company is based in Sherman Oaks, California,
At the helm of the firm is Prospect Mortgage Chairman and Chief Executive Officer Michael J. Williams,
who formerly served as CEO of Fannie Mae.
On Tuesday,
HomeBridge Financial Services Inc. announced that it has reached an agreement to acquire Prospect’s operating assets from parent Prospect Holding Company LLC.
While terms of the deal weren’t disclosed, Iselin, New Jersey-based HomeBridge said the purchase consists primarily of the loan production platform.
HomeBridge reports nearly $9 billion in 2015 mortgage production.
Based on origination data collected by Mortgage Daily, the combined organization would have ranked among last year’s 20-largest mortgage originators.
The announcement indicated that Prospect is the largest originator of FHA 203(k) loans, while HomeBridge is No. 2.
After all is said and done, staffing is expected to exceed 3,000 employees, including around 900 retail loan originators working from nearly 250 branches.
HomeBridge CEO Peter Norden, President Joel Katz and Chief Operating Officer Joe Sheridan will continue to lead the business, according to the news release. Williams will stay on with HomeBridge in an advisory role for at least the immediate future.
Prospect has been tangled in litigation over the past few years. In November 2015, it agreed to a settlement with 50 state regulators over fees charged to borrowers by an appraisal affiliate. In October 2014, it dropped a $20 million lawsuit against former employees and American Financial Network Inc. over alleged illegal solicitation of the employees. And in July 2014, Prospect lost a similar lawsuit against Stearns Lending Inc.
The acquisition is expected to close in January 2017.
