Sprout Mortgage

Shea Pallante, who told Sprout employees the company was closing via a conference call last July, is Arc's new chief production officer.

Has formed new company called Smart Rate Mortgage, based in Florida.

Claims Non-QM lender, servicer owe the bank more than $3.5 million

Major warehouse lender placing restrictions on funding advances.

Lawsuit seeking class action status names Sprout, CEO, and affiliate Recovco Mortgage Management as defendants.

Michael Strauss abruptly ended negotiations with Citibank on financing that might have kept Sprout open.