Prospect Correspondent Lending scales back footprint
Little more than a year of operations
[CORRECTION: An earlier version of this post misstated the role of Amy Brandt Schumacher. She is the current COO of Prospect Mortgage and not no longer with the company as originally stated.]
Prospect Correspondent Lending is scaling back its footprint in correspondent lending to areas it believes offer more of a competitive advantage.
"Because of a very rapidly expanding and underserved renovation lending market opportunity, Prospect Mortgage has created a targeted approach to expand liquidity options to its correspondent lending partners for this product,” said a spokesperson for Prospect.
‘Thus, the Prospect Mortgage Correspondent Division has established the most aggressive renovation product offerings with the fewest overlays in the business. In order to achieve our goal of emerging as the market leader in renovation loans Prospect Mortgage Correspondent Division will narrow its focus to limit all bids to FHA 203(k) and FNMA Homestyle only," they added.
The correspondent division was originally launched back in March 2013 and was featured in HousingWire’s Friday Funding series last year.
“Prospect Mortgage is one of the nation's leading independent residential retail mortgage lenders with a heavy focus on the purchase segment of the market. With a nationwide footprint, direct lending and substantial portfolio of owned MSR, Prospect is in a fantastic position to continue its growth into other segments of the industry," said Chief Operating Officer Amy Brandt Schumacher at the time.
"The most logical expansion was into correspondent lending, where we believe we can add tremendous value in terms of service, price and stability to our client-partners. This is why we launched our correspondent division in March and are looking forward to significant expansion. We will continue to look for opportunities for growth and value creation,” Brandt added.
Over the past year, Prospect has entered into an agreement to sell its appraisal management company Velocette Resource Group, in addition to acquiring retail mortgage branch operations from Impac Mortgage.
Furthermore, Prospect Mortgage recently hired former Fannie Mae CEO Michael Williams as its new CEO.