Prospect Mortgage is launching a renovation lending correspondent division to help lenders address the needs of their customers searching for renovation loans.

Changes and challenges in the financial marketplace are driving lenders to exit correspondent lending. But with so many REO and foreclosure properties available, renovation lending has grown from a niche product to one of the best financing solutions in today's market, says Doug Long, president of Prospect Mortgage Retail and Correspondent Lending.

According to data from the Department of Housing and Urban Development, Prospect Mortgage is the second-largest Federal Housing Administration 203(k) lender in the nation.

“We've achieved this position by focusing on our renovation lending platform and consistently supporting it with a team of sales and operations specialists with more than a quarter century of renovation lending expertise,” Long said.

In addition to delivering detailed product training, the company’s managers will share best practice sales plans to create new business and provide an ongoing source for product information.

“We look forward to partnering with lenders to help them increase their revenue, capture a piece of one of the fastest-growing opportunities in today's market, and positively impact the communities they serve,” Jim Ragan, Prospect Mortgage renovation lending manager, said.

jhilley@housingwire.com