Prospect Mortgage Announces Settlement With Multi-State Mortgage Committee

Prospect Mortgage LLC has reached an agreement with the Multi-State Mortgage Committee (MMC) on behalf of 50 state mortgage regulators. This agreement resolves findings contained in a Report of Examination issued to Prospect on May 2, 2013, covering the period of Oct. 1, 2010 to March 31, 2012. This settlement relates to alleged activities that ceased years ago and occurred prior to the present management. Prospect has not admitted to any alleged violations of applicable laws, regulations or rules governing the conduct and operations of its mortgage lending business, and the parties are entering into the agreement prior to the commencement of any formal enforcement actions or proceedings and without any adjudication of the allegations in the report.

"This settlement is a significant step forward for our company, our employees, our valued customers and industry partners," said Prospect Mortgage General Counsel Joseph Grassi. "Prospect is committed to being a leader in its legal and regulatory practices and has invested significantly in these areas. This agreement resolves all legacy allegations contained in the 2013 examination report and we appreciate the MMC's assistance in putting this matter behind us. We look forward to continuing to focus on our goal of helping our customers achieve their dream of homeownership."