Prospect becomes No. 1 in FHA 203(k) lending

Their strategy: Expand renovation programs

Prospect Mortgage just became the No. 1 lender in the Federal Housing Administration 203(K) market after gaining market share over the past few years, according to HUD data.

"We started out with the goal to be No. 1 and then strategically implemented a companywide vision that put us on top," said Doug Long, Prospect Mortgage president of national lending. "This strategy includes making sure we deliver a superior renovation loan experience for clients and Real Estate Agents, from sales to operations to timely draws."

Some renovations are significant improvements, including adding on, fixing foundations problems and upgrading kitchens and bathrooms.

"We started out by developing a strong focus on recruiting Loan Officers with significant experience in renovation financing," Prospect National Renovation Manager John Adams said. "We continue to add top-tier talent with several new hires so far in 2016."

Also unique to Prospect is their in house Draw Department. This department ensures reliable payment to contractors doing the work and obtaining funds up-front to purchase certain materials before the job begins.

Another key to becoming No. 1 was ensuring that the company’s loan originations system was prepared to process renovation loans after the implementation of TRID, according to Adams.

Its loan officers also play a key role in the company’s success.

"Loan Officers go through extensive renovation training to become Renovation Lending Certified, ensuring that Agents and clients receive knowledgeable, smooth and consistent home financing experience," Adams said. "In addition, our Renovation Coaching Program allows Loan Officers who specialize in areas outside of renovation lending to have a deeply experienced renovation coach guide them through the entire process, from marketing to fulfilling the loan.”

“This gives Loan Officers the ability to offer all viable product options with exceptional service, and Prospect the ability to serve a growing market,” Adams said. 

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