A successful bond offering by Prospect Mortgage LLC will enable the company to grow its purchase financing market share, correspondent lending program and mortgage servicing.
An announcement Monday from parent Prospect Holding Company LLC indicated that the firm has completed a $150 million bond offering.
The Sherman Oaks, Calif.-based company said in the news release that the bond offering included five-year senior notes.
The capital will be used to fund continued strategic growth, Prospect Chief Executive Officer Ron Bergum said in the statement.
Prospect will use some of the funds to increase its purchase financing share through its retail lending channel, Bergum said.
He noted that capital will also be deployed to expand its correspondent lending channel. While the press release indicated that it launched a correspondent channel focused on FHA and renovation loans in March, Prospect announced in September 2012 that it had launched the renovation lending correspondent division.
In addition, Bergum said that Prospect plans to use a portion of the proceeds to significantly enhance its loan servicing platform and capabilities. The company said it has accumulated mortgage servicing rights on more than $13 billion in home loans during the past 36 months.
“We have grown Prospect into a top-10 originator of home purchase loans and one of the country’s leading FHA renovation lenders,” Bergum said in the statement. “This bond offering marks an important milestone in Prospect’s evolution and an opportunity to move our company to the next level.”